Small Business Administration: Inadequate Oversight of Capital Management
Services, Inc.-an SSBIC (Testimony, 08/07/95, GAO/T-OSI-95-19).

This testimony discusses GAO's March 1994 (GAO/OSI-94-23) on Capital
Management Services, Inc., a specialized small business investment
company in Little Rock, Arkansas, that was licensed by the Small
Business Administration (SBA).  GAO examines (1) whether SBA properly
regulated and oversaw the operations of Capital Management; (2) whether
Capital Management adhered to SBA regulations in determining the
eligibility of firms it financed; and (3) whether it operated in a
businesslike manner in providing financing.  GAO also analyzes the
financing that Capital Management provided to Susan McDougal, Castle
Sewer and Water Corporation, and Southloop Construction Corporation,
Castle's wholly owned subsidiary.

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

 REPORTNUM:  T-OSI-95-19
     TITLE:  Small Business Administration: Inadequate Oversight of 
             Capital Management Services, Inc.-an SSBIC
      DATE:  08/07/95
   SUBJECT:  Fraud
             Conspiracy
             Small business assistance
             Small business loans
             Investment companies
             Bankruptcy
             Disadvantaged persons
IDENTIFIER:  SBA Specialized Small Business Investment Companies Program
             Arkansas
             Whitewater
             
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