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.
![handle is hein.gao/gaobadysm0001 and id is 1 raw text is:
UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON D.C. 20548 I
FOR RELEASE ON DELIVERY
EXPECTED AT 9:30 a.m. DST
TUESDAY, MAY 19, 1981
STATEMENT OF
HENRY ESCHWEGE, DIRECTOR
COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION
BEFORE THE
SUBCOMMITTEE CN COMMERCE, CONSUMER, AND
MONETARY AFFAIRS
COMMITTEE CN GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES
ON gq
SMALL, -BUNi-S.-ADMIWnSTRATIOGN FRANCHISE LOANS:
RISK OF LOSS CAN BE REDUCED AND
PROGRAM EFFECTIVENESS IMPROVED] c
MR. CHAIRMAN AND MEMBERS OF THE SUBCOMMITTEE:
WE ARE HERE TODAY AT THE REQUEST OF THE SUBCOMMITTEE TO
DISCUSS THE RESULTS OF OUR REVIEW OF SMALL BUSINESS ADMINISTRATION
(SBA) LOANS TO FRANCHISE BUSINESSES.
IN FEBRUARY 1979 YOU REQUESTED US TO REVIEW SBA FRANCHISE
LOANS UNDER THE 7(a) BUSINESS LOAN PROGRAM. WE FOCUSED OUR EFFORTS
ON SEVERAL SPECIFIC QUESTIONS OF PARTICULAR INTEREST TO THE SUB-
COMMITTEE. AS A RESULT, OUR OBSERVATIONS RELATE PRIMARILY TO THOSE
QUESTIONS WHICH ARE DISCUSSED IN DETAIL IN OUR REPORT OF APRIL 1i,
1980 (CED-80-47). THE SUBCOMMITTEE RELEASED THE REPORT TO SBA IN
LATE OCTOBER 1980. OTHER THAN REVIEWING THE AGENCYIS REQUIRED
RESPONSE DATED JANUARY 6, 1981 WE HAVE NOT FOLLOWED UP ON ITS
CONTENTS.
BACKGROUND
BRIEFLY, LET ME PROVIDE SOME BACKGROUND INFORMATION ON
SBA FRANCHISE LOANS. FRCM 1959, WHEN THE FIRST LOAN WAS MADE,
U ll U 115255
/ / ~i ~115255](ViewImageLocal?handle=hein.gao/gaobadysm0001&div=1&collection=&method=preview&ext=.png&size=3)