B-187945: Mar 22, 1977

SBA SHOULD NOT WITHHOLD MONEY FROM BANK REPRESENTING ACCRUED INTEREST ON LOAN GUARANTEED BY SBA WHICH IS OTHERWISE DUE BANK AS ITS SHARE FROM LIQUIDATION OF BORROWER'S COLLATERAL. SBA'S PAYMENT TO BANK OF GUARANTEED PERCENTAGE OF PRINCIPAL PLUS ACCRUED INTEREST WAS PROPER. SBA HAS NO LEGAL OR FACTUAL BASIS TO WITHHOLD MONEY IN QUESTION ON GROUNDS THAT IT WAS NOT ADVISED OF INTEREST DEFAULT. OKLAHO...

B-187945: Mar 22, 1977

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...