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 14-16: Effectiveness and Timeliness of the Hurricane Sandy Disaster Loan Closing and Disbursement Processes
On August 27, 2014, the OIG issued Audit Report 14-16, Effectiveness and Timeliness of the Hurricane Sandy Disaster Loan Closing and Disbursement Processes. This report presents the results of our audit of Hurricane Sandy disaster loan closing and disbursement processes. The OIG reviewed these processes to determine whether all required closing documents were being obtained, all required closing steps were being performed prior to disbursement, and whether the SBA met its strategic goal of making initial disbursements within five days or less after receipt of executed closing documents. The OIG found that the SBA closed and disbursed Hurricane Sandy disaster loans in compliance with established procedures and performance standards. The OIG also determined that the SBA obtained all required closing documents during the closing process and all steps for each disbursement were performed as required. Additionally, the OIG determined that after receipt of executed closing documents from the borrowers, the SBA made initial disbursements within its strategic goal of five days after receipt of executed closing documents. The audit did not identify significant concerns regarding the disaster loan closing and disbursement processes. During the audit, the OIG identified opportunities for management consideration which may further reduce overall loan disbursement times. Specifically, we believe the SBA could significantly reduce overall loan closing and disbursement times if it obtained certain documents from borrowers earlier in the application process.