Measuring Accomplishments Under the Business Development Assistance Program--More Accurate Verification Recommended

The Economic Development Administration (EDA) attempts through its Business Development Assistance Program to create permanent jobs in areas of high unemployment by helping businesses to expand or locate new facilities in these areas. This help includes direct loans and guarantees of loans with private lending institutions. EDA has a goal that at least one permanent job will result for each $10,000 of assistance. As of June 30, 1979, EDA had made 736 direct loans valued at about $672 million and had guaranteed 235 loans totaling about $387 million. GAO reviewed the following issues relating to the effectiveness of the Business Development Assistance Program: whether EDA compares and evalutes the number of jobs actually saved and created through the program with those projected; how EDA verifies the jobs saved and created; and how EDA assures that the jobs resulting from the program benefit the unemployed.