Statements
Statement of Rep. Adams on OIG’s Review of the Microloan Program
Washington, DC,
October 12, 2017
“Oversight Improvements Needed: SBA OIG’s Review of the Microloan Program”
Statement of the
Hon. Alma Adams, Ranking Member
House Committee on Small Business
Subcommittee on Investigations, Oversight, and Regulations
Thursday October 12, 2017 at 2:00 pm
In recent years, the nature of small business financing has evolved. No longer do many banks want to take on a business loan under $250,000 – leaving much of the nation’s small employers empty handed. SBA’s Microloan program fulfills a critical need in the capital markets by serving entrepreneurs who are not served by the private sector or SBA’s 7(a) loan program.
The Microloan Program is a key resource for start-up, newly established, and growing small businesses. It has provided millions of dollars in financing and technical assistance to small businesses and entrepreneurs since its inception in 1992.
By providing loans to non-profit intermediaries, who in turn lend funds to the smallest of small businesses, the program helps borrowers streamline their operations, grow to profitability, and create new jobs.
This committee has recognized growth in microlending. And by recently passing legislation increasing the intermediary loan limit, we have extended the reach of the program. Doing so enhances the ability of small firms to access much needed capital.
As we enhance the program, it is invaluable to consider the program’s performance at both the intermediary and agency levels. The Office of Inspector General has recently focused its attention on the SBA’s management of the program.
The report found a number of improvements were needed to measure performance and ensure the program’s integrity. And a number of concerns were raised in regards to the reporting system and documentation of loans. We take these issues very seriously because it is our duty to guarantee the Microloan program preforms at its best if we intend to see the success of entrepreneurs in our communities.
Today’s hearing will provide us with the opportunity to hear about the OIG’s findings related to oversight and performance of the program. Overall, this committee seeks to ensure that the Microloan Program works for small business borrowers. I look forward to hearing from our witnesses today and gaining their insights on how we can improve the program.
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