Payment of Interest on Loan Guaranteed by Small Business Administration

Administrator of the Small Business Administration (SBA) requested GAO's concurrence in payment of over $19,000 to an Oklahoma bank, representing accrued interest on SBA guaranteed loan due bank because of borrower's default. Bank's failure to notify SBA of default within required 30 days was minor infraction, so payment to bank of guaranteed percent of principal plus interest was proper. SBA may not withhold money in question.