Loan Classifications and Overpayments on Secondary Market Loans

Report Number: 8-09

Date Issued: March 26, 2008

To: Grady Hedgespeth, Director Office of Financial Assistance

Jennifer Main, Chief Financial Officer

/s/ Original Signed

From: Debra S. Ritt, Assistant Inspector General for Auditing

Subject: Loan Classifications and Overpayments on Secondary Market Loans, Report No 8-09

This report present the results of our audit of loan classifications and overpayments on secondary market loans. SBA's secondary market program was created to encourage small business lending by allowing lenders to sell teh guaranteed portion of their 7(a) loans to investors.

To read the full report, please see the attached document.