[Congressional Record Volume 147, Number 37 (Tuesday, March 20, 2001)]
[Extensions of Remarks]
[Page E406]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            SBA LEGISLATION

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                       HON. EDDIE BERNICE JOHNSON

                                of texas

                    in the house of representatives

                        Tuesday, March 20, 2001

  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, today I rise to 
introduce a bill which will improve the efficiency and effectiveness of 
the Small Business Administration (SBA). As you know, the Small 
Business Administration (SBA) is responsible for aiding, counseling, 
assisting, and protecting the interests of the nation's small 
businesses. According to the U.S. General Accounting Office, as of 
September 30, 2000, SBA's total loan portfolio was about $52 billion, 
including $45 billion in direct and guaranteed small business loans and 
other guarantees and $7 billion in disaster loans. The SBA plays a 
critical role in the development of small businesses all around the 
nation.
  However, in a recent report, GAO found that SBA's lack of a 
coordinated lender oversight program increases the potential for 
program abuse and unnecessary financial risk. Therefore, GAO 
recommended that SBA ensure that the required 7(a) lender oversight 
reviews are conducted. Additionally, GAO recommended that SBA establish 
organizational responsibilities and a mechanism for ensuring that 
information on the lender review process is collected, reported and 
analyzed.
  I am introducing this legislation to ensure that GAO's 
recommendations are carried out. My bill, if enacted, would not only 
address GAO's concerns by establishing an office which has 
responsibility for lender oversight reviews but would also bring forth 
a mechanism for ensuring that information on the lender review process 
and lender compliance is collected, analyzed and reported to relevant 
Congressional Committees.
  Mr. Speaker, this bill is not a partisan issue, but it is a good 
government issue because it not only assures that the people's money is 
spent wisely but empowers the SBA to ensure that the laws are followed. 
I urge my colleagues to support this legislation and I look forward to 
being able to vote on this bill on the house floor.

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