Small Business Administration:

Prohibited Practices and Inadequate Oversight in SBIC and SSBIC Programs

T-OSI-95-16: Published: Sep 28, 1995. Publicly Released: Sep 28, 1995.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed whether small business investment companies (SBIC) and specialized small business investment companies (SSBIC): (1) engaged in improper management practices; and (2) took timely corrective actions for the regulatory violations identified by the Small Business Administration (SBA). GAO noted that the: (1) SBIC and SSBIC engaged in improper management practices by providing loans to officers and directors of the licensees, loans for prohibited real estate purchases, and loans to individuals of questionable eligibility; (2) SBIC and SSBIC seldom took timely corrective actions for regulatory violations, and SBA did not ensure that these violations were corrected; (3) some SBIC and SSBIC violations went unresolved for 2 to 5 years or more; and (4) the estimated losses for 3 of the 5 companies reviewed exceeded $4 million.

May 26, 2016

Apr 14, 2016

Apr 11, 2016

Mar 21, 2016

Feb 8, 2016

Jan 27, 2016

Nov 16, 2015

Oct 28, 2015

Sep 8, 2015

Jul 27, 2015

Looking for more? Browse all our products here