Small Business Administration's Compliance with Comptroller General's Decision on Purchase of Guaranteed Loans

The Small Business Administration (SBA) lacks authority to purchase guaranteed loans from banks which have not complied with SBA regulations requiring notification of a borrower's delinquency within 30 days. The files for 80 guaranteed loans purchased and four loans rejected for purchase at SBA's Boston, Kansas City, and San Francisco district offices were examined, as were 106 randomly selected loan authorization purchases to determine the extent of compliance with this regulation.