Need To Improve Servicing of Direct Loans Under the Business Development Assistance Program

The Economic Development Administration (EDA) attempts to create permanent jobs in high unemployment areas by assisting businesses to expand or locate new facilities in affected areas. The assistance includes direct loans and guarantees of loans with private lending institutions and is administered primarily through six regional offices. Loan servicing is undertaken by regional offices to ensure loan repayment and detect weaknesses in the borrower's repayment ability.