Inspection & Evaluation Advisory Memorandum 01-03-01: Timeliness of Formal Character Determinations on Loan Applicants
Date Issued: Friday, March 30, 2001
Report Number: 01-03-01

On March 30, 2001, the OIG issued Inspection & Evaluation Advisory Memorandum 01-03-01, Timeliness of Formal Character Determinations on Loan Applicants.  The SBA attempts to prevent fraud and monetary loss by making any loan applicant who discloses a prior or pending criminal record subject to a formal character determination.  This requirement applies to principals of Certified Development Companies seeking to participate or participating in the Agency’s 504 program.  The OIG conducted this evaluation due to district office concerns related to potential delays from character determinations.  The OIG found that clarifying responsibilities and using e-mail in the notification process could improve the timeliness of customer service.