Small Business: The Small Business Administration's Progress in
Restructuring Its Business Development Program (Testimony, 09/22/93,
GAO/T-RCED-93-56).

Concerned that gaining access to the 8(a) business development program
was a lengthy and burdensome process, that the program's administration
was inefficient, and that few firms were able to compete successfully in
the open market, Congress mandated wholesale changes to the program in
1988.  Although the Small Business Administration (SBA) has made some
changes to the program, which promotes the development of small
businesses owned by socially and economically disadvantaged persons, the
program still falls short in several areas.  SBA's latest estimate for
completing the redesign work is late 1995, five years later than
originally projected.  The program lacks a management information
system, developed in accordance with federal guidelines, that yields
complete and accurate information.  As a result, Congress and program
managers are in the dark about what assistance is being provided to 8(a)
firms and whether the program is effective.  In addition, access to the
program still needs improving.  Although SBA must provide 8(a) program
applicants with timely feedback on their eligibilility to participate in
the program, it continues to operate without an application-tracking
system that provides timely information on where and why
application-processing problems are occurring.  Finally, SBA needs to
periodically review the business plan of each 8(a) firm.  Without such a
review, SBA cannot be sure that each plan is up-to-date, that the 8(a)
firms' business development goals are realistic, and that the firms are
making progress toward these goals.

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

 REPORTNUM:  T-RCED-93-56
     TITLE:  Small Business: The Small Business Administration's 
             Progress in Restructuring Its Business Development Program
      DATE:  09/22/93
   SUBJECT:  Small business assistance
             Management information systems
             Small business loans
             Disadvantaged persons
             Technical assistance
             Small business set-asides
             Small business contracts
             Systems design
             Program management
             Business development loans
IDENTIFIER:  SBA 8(a) Program
             Federal Procurement Data System
             
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