7(a) Loan Approval for Borrowers with Unresolved COVID-19 Pandemic Loan Compliance Issues
Inspection / Evaluation · Small Business Administration OIG · 2024-05-21 · about Small Business Administration
Report
Title
7(a) Loan Approval for Borrowers with Unresolved COVID-19 Pandemic Loan Compliance Issues
Submitting OIG
Small Business Administration OIG
Component agency
Small Business Administration
Type
Inspection / Evaluation
Publication date
2024-05-21
Summary
The Office of Inspector General (OIG) is issuing this Inspection Report to assess the Small Business Administration’s (SBA) process for approving 7(a) loans for borrowers with unresolved pandemic loan compliance issues.From October 1, 2019 through May 8, 2023, SBA approved and disbursed 172,598 7(a) loans, totaling $83.4 billion. The 7(a) lenders who have delegated approval authority approved 92 percent of these loans and SBA approved the remaining 8 percent.
Recommendations (1)
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Status
Text
1
Open
Review and appropriately resolve hold codes related to the 5,044 7(a) loans to determine impact on 7(a) eligibility and seek remedy or repayment of all 7(a) loans deemed ineligible.