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110385 1 (1979-09-18)

handle is hein.gao/gaobadyif0001 and id is 1 raw text is: 


           UNITED STATES GENERAL ACCOUNTING OFFICE   I
                  WASHINGTON, D.C. 20548

                                    FOR RELEASE ON DELIVERY
                                    EXPECTED AT 8:00 A.M. DST
                                    TUESDAY, SEPTEMBER 18, 1979

                         STATEMENT OF
                   HENRY ESCHWEGE, DIRECTOR
         COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION

                         BEFORE THE                       5qo

             SELECT COMMITTEE ON SMALL BUSINESS      _
                     UNITES STATES SENATE

                             ON

                  LSBA'S 7(a) LOAN PROGRAM

MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE:

     WE ARE HERE TODAY TO DISCUSS THE SMALL BUSINESS ADMINIS-

TRATION'S (SBA'S) 7(a) LOAN PROGRAM AND AGENCY ACTIONS STILL

NEEDED TO STRENGTHEN LOAN APPROVAL AND LOAN SERVICING.

PRESENTLY THE TOTAL LOAN PORTFOLIO IS ABOUT $6.8 BILLION

CONSISTING OF GUARANTEED, IMMEDIATE PARTICIPATION, AND DIRECT

LOANS.

     PUBLIC LAW 93-386 REQUIRED THE GENERAL ACCOUNTING

OFFICE TO CONDUCT A FULL-SCALE AUDIT OF THE SMALL BUSINESS

ADMINISTRATION. AS A RESULT WE ISSUED EIGHT REPORTS TO THE

CONGRESS IN 1975 AND 1976. OUR RECENT FOLLOW-UP REPORT

DATED AUGUST 21, 1979, (CED-79-103) POINTS OUT THAT MUCH

OF THE CORRECTIVE ACTION PROMISED BY SBA HAS NOT BEEN

TAKEN. OUR FEBRUARY 1976 REPORT SPECIFICALLY DISCUSSED

PROBLEMS IN THE 7(a) LOAN PROGRAM AND STRESSED THE NEED

FOR MANAGEMENT ATTENTION (GGD-76-24).






                                       7   __ ____110385

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