Business Regulation and Consumer Protection:

Closing of Small Business Administration in Marshall, Texas

CED-77-22: Published: Jan 6, 1977. Publicly Released: Dec 30, 1983.

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The closing of the Small Business Administration's district office in Marshall, Texas, was reviewed.

The area formerly served by the Marshall district office is now served by the Dallas, New Orleans, and Little Rock district offices. The production per staff member of the three major units in the Marshall office was generally not lower than their counterparts at the SBA district offices to which Marshall's workload was redistributed. The SBA overestimated gross savings from the closing of the Marshall office by $3,022, and underestimated costs by $75,863. It is estimated that closing the office will cost $8,488 in the first year instead of saving $70,397 as claimed by SBA. Savings in the second and succeeding years would be $118,670. The Marshall office was renovated in 1975 at a cost of $21,783. Only the draperies, which cost $150, can be used in other SBA offices. The director of the Dallas region and two other officials chartered a plane for a flight to and from Marshall at a cost of $202. The cost of the chartered flight does not seem excessive.

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