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Small Business Administration: Additional Steps Needed to Enhance Agency Preparedness for Future Disasters

GAO-07-114 Published: Feb 14, 2007. Publicly Released: Feb 14, 2007.
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Highlights

The Small Business Administration (SBA) is the federal government's primary provider of disaster loans to businesses, homeowners, and renters. In a previous report (GAO- 06-860), GAO found that SBA's limited information systems planning contributed to delays in processing disaster loans for the victims of the 2005 Gulf Coast Hurricanes (Katrina, Rita, and Wilma). To provide further insight into how SBA's disaster preparedness could be enhanced, this second report, initiated under the Comptroller General's authority, assesses other logistical issues (e.g., staffing and space acquisition) that may have affected the efficiency of the agency's response to the hurricanes. Specifically, this report (1) assesses SBA's logistical planning efforts prior to the Gulf Coast hurricanes and current planning efforts and (2) discusses SBA's outreach services to hurricane victims. GAO reviewed disaster planning reports, interviewed SBA officials, and visited the Gulf Coast region.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Small Business Administration To better position SBA to prepare for and respond to potential disasters, the Administrator of SBA should direct the Office of Disaster Assistance to develop time frames for completing key elements of the disaster management plan and a long-term strategy for acquiring adequate office space.
Closed – Implemented
SBA has taken steps to incorporate FEMA's Hazus catastrophe modeling program into its disaster planning process. SBA has also conducted disaster simulation exercises.
Small Business Administration To better position SBA to prepare for and respond to potential disasters, the Administrator of SBA should direct the Office of Disaster Assistance to direct staff involved in developing the disaster management plan to further assess whether the use of disaster simulations or catastrophe models would enhance the agency's disaster planning process.
Closed – Implemented
SBA has completed key elements of the disaster plan such as maintaining more than 1,000 full-time disaster staff and 2000 reserve disaster staff and securing additional office space.

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Topics

Disaster planningDisaster recoveryDisaster relief aidEmergency preparednessHuman capital managementHurricane KatrinaHurricanesLending institutionsLoansProgram evaluationSmall business assistanceStrategic planning