Small Business Administration: Inadequate Oversight of Capital Management Services, Inc.--an SSBIC

Pursuant to a congressional request, GAO reviewed the operations of a Small Business Administration (SBA) licensee, focusing on: (1) SBA regulation and oversight of the licensee's operations; (2) the licensee's compliance with SBA regulations in determining the eligibility of the firms it financed and whether its operations were business-like; and (3) the financing provided to an individual and two disadvantaged small businesses.