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112675 1 (1980-06-30)

handle is hein.gao/gaobadynw0001 and id is 1 raw text is: 





         UNITED STATES GENERAL ACCOUNTING OFFICE
                  WASHINGTON, DC  20548

                                   FOR RELEASE ON DELIVERY
                                   EXPECTED AT 9:00 A.M. EDT.
                                   MONDAY, JUNE 30, 1980

                       STATEMENT OF
                 HENRY ESCHWEGE, DIRECTOR
       COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION

                        BEFORE THE
            SELECT COMMITTEE ON SMALL BUSINESS
                    UNITED STATES SENATE

                            ON

             THE SMALL BUSINESS ADM.INISTRATION 'S
               SURETY BOND GUARANTEE PROGRAM..


MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE:

     WE WELCOME YOUR INVITATION TO DISCUSS THE RESULTS OF OUR

RECENT REVIEW, MADE AT YOUR REQUEST, OF THE SMALL BUSINESS

ADMIN S.TRATONS- ( SBhT -SU7REr-BON- RA E_ PROGRAM. THE

COMPTROLLER GENERAL'S REPORT WAS RELEASED TO THIS COMMITTEE ON

DECEMBER 27, 1979, (CED-80-34).

     OUR REVIEW SHOWED THAT THE SBA IS NOT MANAGING THE SURETY

BOND GUARANTEE PROGRAM SATISFACTORILY. FOR EXAMPLE:

     --BOND GUARANTEES OFTEN ARE BASED ON UNRELIABLE

       UNDERWRITING DATA AND SUPERFICIAL REVIEWS.

     --SBA AND THE SURETY COMPANIES ARE MAKING LITTLE

       EFFORT TO MINIMIZE LOSSES.






                                                   112675

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