SBAExpress Pilot Program Inspection Report

Title:
SBAExpress Pilot Program Inspection Report
AgencyName:
Small Business Administration
MajorOrganizationalSubdivision:
Office of the Inspector General
MinorOrganizationalSubdivision:
None Selected
Unit:
Inspection and Evaluation Division
Abstract:
The Office of Inspector General (OIG) issued an inspection report on the SBAExpress Pilot Program. It focuses on whether the loan underwriting practices are consistent with the program's objectives and provides data as to how lenders are using the program. While overall the SBAExpress program appears to be meeting its objectives and is considered by lenders to be highly effective in increasing the capital available to small businesses, the OIG found that language governing certain SBAExpress rules, regulations and standard operating procedures leaves room for broad interpretation. The OIG recommends that the Associate Administrator for Financial Assistance clarify the rules and regulations pertaining to the use of credit scoring and promissory notes in SBAExpress loans.
Purpose:
The inspection originated with an inquiry sent to the OIG by an SBA district counsel who suggested that the OIG review the loan underwriting practices of a bank following the request for SBA purchase of three of eleven of its SBAExpress loans. Additionally, the inspection addresses the concerns of Senators Patrick Leahy and James Jeffords who, in a December 1997 letter to SBA's Administrator, requested that SBA "...review the underwriting practices of SBAExpress lenders."
AgencyProgram:
N/A
DistributorName:
Office of Inspector General
DistributorOrganization:
Small Business Administration
DistributorStreetAddresss:
409 3rd Street, S.W.
DistributorCity:
Washington
DistributorState:
DC
DistributorZip:
20416-4112
DistributorCountry:
USA
DistributorHoursOfService:
8:30 a.m. - 5:00 p.m.
DistributorTelephone:
(202) 205-7187
DistributorFax:
(202) 205-6922
DistributorResourceDescription:
98-06-01
DistributorOrderProcess:
This report can be obtained by contacting the Inspection and Evaluation Division at (202) 205-7202 or by writing to: Office of Inspector General, Inspection and Evaluation Division, 409 3rd Street, S.W., Mail Code 4115, Washington, D.C. 20416-4112.
SourcesOfData:
N/A
AccessConstraints:
None
UseConstraints:
None
ContactName:
Office of Inspector General
ContactOrganization:
Small Business Administration
ContactStreetAddress:
409 3rd Street, S.W.
ContactCity:
Washington
ContactState:
DC
ContactZipCode:
20416-4112
ContactCountry:
USA
ContactHoursOfService:
8:30 a.m. - 5:00 p.m.
ContactTelephone:
(202) 205-7178
ContactFax:
(202) 205-6922
ScheduleNumber:
N/A
ControlIdentifier:
SBA10980
RecordSourceAgencyName:
Small Business Administration
RecordSourceUnit:
Office of Administrative Services
DateOfLastModification:
19980714