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116828 1 (1981-10-27)

handle is hein.gao/gaobadywi0001 and id is 1 raw text is: 



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

                                       FOR RELEASE ON DELIVERY
                                       EXPECTED AT 9:30 A.M.
                                       TUESDAY, OCTOBER 27, 1981

                           STATEMENT OF
                           LOWELL DODGE
                       ASSOCIATE DIRECTOR
           COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION

                            BEFORE THE
                    COMMITTEE ON SMALL BUSINESS
                       UNITED STATES SENATE

                                ON

               THE SMALL BUSINESS ADMINISTRATION'S
                 ECONOMIC OPPORTUNITY LOAN PROGRAM

MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE:

     WE WELCOME YOUR INVITATION TO DISCUSS OUR REPORT ON THE

SMALL BUSINESS ADMINISTRATION'S (SBA's) ECONOMIC OPPORTUNITY LOAN

PROGRAM. OUR REVIEW WAS REQUIRED BY PUBLIC LAW 95-507. THE

COMPTROLLER GENERAL'S REPORT WAS RELEASED TO THE CONGRESS ON

DECEMBER 8, 1980, (CED-81-3).

     OUR REVIEW SHOWED THAT THE ECONOMIC OPPORTUNITY LOAN PROGRAM

HAD BEEN A MEANS TO SUSTAINED ECONOMIC PROGRESS FOR RELATIVELY

FEW BORROWERS. WE CONCLUDED THAT PROGRAM RESULTS WERE UNSATIS-

FACTORY AND THAT ATTEMPTS NEED TO BE MADE TO IMPROVE THEM. OUR

REPORT INVITES THE CONGRESS TO MONITOR SBA'S IMPLEMENTATION OF

OUR SPECIFIC RECOMMENDATIONS, DESCRIBED BELOW. FINALLY, THE RE-

PORT RECOMMENDS THAT UNLESS PROGRAM RESULTS IMPROVE, CONGRESS

SHOULD CONSIDER REDIRECTING FUNDS FOR THE ECONOMIC OPPORTUNITY

LOAN PROGRAM TO OTHER FEDERAL PROGRAMS FOR DISADVANTAGED BUSINESS

OWNERS.



                                                        116828

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