Peggy E. (Peg) Gustafson was sworn in as the Inspector General of the U.S. Small Business Administration on October 2, 2009. Ms. Gustafson previously served as General Counsel to Senator Claire...
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Audit Report 0-08: An Audit of an Early Defaulted Loan
On March 6, 2000, the OIG issued Audit Report 0-08, An Audit of an Early Defaulted Loan. The loan was judgmentally selected for review as part of the OIG’s ongoing program to audit SBA guaranteed loans charged off or transferred to liquidation within 36 months of origination (early default). The objective of this audit was to determine if the early loan default was caused by lender or borrower noncompliance with SBA requirements. The OIG did not identify any borrow or lender noncompliance that materially affected the loan approval decision. The OIG concluded that the loan default resulted from declining business revenue and cash deficits.