United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-04-26 monographic deposited born digital GA 1.13:RCED-94-182 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-94-182 P0b002ee18039e783 f:rc94182 DGPO 2010-08-12 2011-03-23 GAOREPORTS-RCED-94-182 machine generated eng fdlp REPORT GAOREPORTS-RCED-94-182 RCED-94-182 Small business assistance Small business investment companies Disadvantaged persons Small business loans Compliance Eligibility determinations Minorities Economic development Financial records Documentation SBA Minority Small Business and Capital Ownership Development Program SBA 8(a) Program Letter Report RCED Specialized small business investment companies (SSBIC) often do not comply with the Small Business Administration's (SBA) guidance for documenting the eligibility of the small businesses they finance. GAO estimates that for more than a third of the small businesses financed, SSBICs did not prepare eligibility profiles documenting that the businesses were owned by socially or economically disadvantaged persons. Even when SSBICs did prepare eligibility profiles, they often cited a single factor as the basis for eligibility--typically minority ownership--although SBA has told SSBICs to base eligibility on a composite of factors, such as owners' minority status, limited education, and low income. One possible reason for the lack of compliance with SBA guidance is that SSBICs do not believe documentation is always needed, particularly when the small business is minority owned. SBA's requirement that examiners accept eligibility determinations on the basis of minority status alone continues to be inconsistent with the agency's instructions to SSBICs to use a composite of factors as a basis for determining eligibility. Consequently, examiners would not be expected to spot cases in which SSBICs are financing businesses owned by ineligible persons. https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-94-182/html/GAOREPORTS-RCED-94-182.htm GAO/RCED-94-182 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-94-182 Letter Report GAO/RCED-94-182; Small Business Administration: Inadequate Documentation of Eligibility of Businesses Receiving SSBIC Financing; Small business assistance Small business investment companies Disadvantaged persons Small business loans Compliance Eligibility determinations Minorities Economic development Financial records Documentation SBA Minority Small Business and Capital Ownership Development Program SBA 8(a) Program