Small Business Administration: Prohibited Practices and Inadequate
Oversight in SBIC and SSBIC Programs (Testimony, 09/28/95,
GAO/T-OSI-95-16).

GAO discussed whether small business investment companies (SBIC) and
specialized small business investment companies (SSBIC): (1) engaged in
improper management practices; and (2) took timely corrective actions
for the regulatory violations identified by the Small Business
Administration (SBA). GAO noted that the: (1) SBIC and SSBIC engaged in
improper management practices by providing loans to officers and
directors of the licensees, loans for prohibited real estate purchases,
and loans to individuals of questionable eligibility; (2) SBIC and SSBIC
seldom took timely corrective actions for regulatory violations, and SBA
did not ensure that these violations were corrected; (3) some SBIC and
SSBIC violations went unresolved for 2 to 5 years or more; and (4) the
estimated losses for 3 of the 5 companies reviewed exceeded $4 million.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-OSI-95-16
     TITLE:  Small Business Administration: Prohibited Practices and 
             Inadequate Oversight in SBIC and SSBIC Programs
      DATE:  09/28/95
   SUBJECT:  Small business assistance
             Small business loans
             Eligibility determinations
             Small business investment companies
             Real estate purchases
             Personal loans
             White collar crime
             Regulatory agencies
             Investigations by federal agencies
             Ethical conduct
IDENTIFIER:  SBA Specialized Small Business Investment Companies Program
             SBA Small Business Investment Companies Program
             
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