CORRECTED: C-Suite Wednesday — SBA’s Annual Performance Report Outlines Lender Compliance Goals for 2020

February 19, 2020

By Caity Witucki
Contributing Editor, C-Suite Wednesday

CORRECTED: C-Suite Wednesday — SBA’s Annual Performance Report Outlines Lender Compliance Goals for 2020

Corrected Version (2/19/20) Substitutes “Agency” for “SBA Inspector General”

To ensure accountability and track progress, the SBA has developed Agency Priority and Performance Goals that are assessed on a quarterly basis. The results of the rigorous data-driven performance reviews are then published in the SBA’s Annual Performance Report.

According to the Annual Performance Report for FY 2021, which was published on February 5, 2020, the SBA has already made great progress toward its 2021 goal in federal contracting. However, the SBA’s goals for human capital and lender compliance remain focus areas for improvement.

The SBA and the Office of Management and Budget (OMB) has determined that performance toward Strategic Objective 1.3 (Federal Contracting) made noteworthy progress in providing contracting opportunities for small businesses. “Government-wide, agencies exceeded their goal of 23 percent for qualified small-business procurements, realizing a result of 25 percent. This result yielded $120 billion for small businesses,” says the report. “The federal prime and subcontract awarded to small businesses has supported more than 1 million jobs.”

However, a high number of senior leadership vacancies and lack of business succession planning continues to challenge the SBA’s human capital goals. Throughout FY 2020, the SBA plans to focus on providing small businesses with the tools necessary for retaining new hires.

Additionally, the SBA Inspector General plans to address lender compliance by recommending the following actions:

  • Develop an effective method of disclosing and tracking loan agent involvement in SBA business loan programs.
  • Enhance the analysis of loan agents to monitor and identify high-risk LSPs.
  • Conduct an evaluation to determine why material lender noncompliance was not identified or mitigated during purchase and quality control reviews on recently reported high-dollar/early-defaulted loans.
  • Strengthen controls in SBA preference programs to detect ineligible firms and remove those firms on a timely basis.

The fiscal impact of these agency-wide goals is discussed in the Agency Financial Report for FY 2019 which was released at the end of December 2019.

Annual Performance Report FY 2021
Agency Financial Report FY 2019