Rural Development Administration: Patterns of Use in the Business and Industry Loan Guarantee Program
RCED-92-197
Published: Jul 29, 1992. Publicly Released: Aug 24, 1992.
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Highlights
Pursuant to a congressional request, GAO reviewed the Farmers Home Administration's (FmHA) Business and Industry (B&I) Loan Guarantee Program, focusing on: (1) which states and territories are using the B&I program and why some states are not; (2) types of industries receiving B&I loan guarantees; and (3) how the B&I program has impacted rural development.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, Rural Development Administration (RDA), to consider revising the regulations to allow the selective use of guarantees for activities related to tourism. |
In line with the GAO recommendations, RDA: (1) will remove the restriction on using guaranteed loans for tourism and recreation; and (2) has issued guidance intended to improve the accuracy of the information in its Rural Community Facilities Tracking System.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, RDA, to determine why the agency's information systems contain inaccurate and incomplete data and correct existing problems so that RDA can effectively manage the program. |
The agency prepared an administrative notice to all state and district staff describing steps staff should take to more accurately estimate the number of jobs saved and/or created.
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Topics
Business assistanceBusiness development loansEconomically depressed areasstate relationsGovernment guaranteed loansRural economic developmentState-administered programsTourismLoan guaranteesUnemployment