This report identifies four early-defaulted loans that warrant immediate attention by the Small Business Administration (SBA) in order to recover approximately $3.2 million. We reviewed these loans as part of our ongoing audit of purchased 7(a) Recovery Act1 loans. The objective of the audit was to determine whether purchased 7(a) Recovery Act loans were originated, closed, and purchased in accordance with the SBA's rules and regulations, and commercially prudent lending standards. These four loans are part of a judgmental sample of Recovery Act loans approved for $500,000 or more that had been purchased as of September 30, 2010.
ROM 11-05 - Material Deficiencies Identified in Four 7(a) Recovery Act Loans Resulted in $3.2 Million of Questioned Costs
Date Issued: Wednesday, June 29, 2011
Report Number: ROM: 11-05
Attachments: Audit Report ROM 11-05 final.pdf