January 28, 2020

By Caity Witucki
Contributing Editor, SBA Hot Topic Tuesday

SBA Hot Topic Tuesday – SBA’s OIG Identifies Material Deficiencies in 21 Defaulted Loans (Part 2)

The SBA’s Office of Credit Risk Management (OCRM) is responsible for the oversight of SBA’s lending partners and their loan portfolios. However, a recent audit report revealed that OCRM did not conduct 108 of its 358 (30%) planned high-risk lender reviews for FYs 2015-2017.

In January 2019, SBA’s OIG analyzed 37 of the 78 defaulted 7(a) loans that were made by lenders who were scheduled to receive reviews and identified material deficiencies in 21 of the loans. The deficiencies in loans 11 through 21 are summarized below:

Source: Generated by OIG based on OIG’s analysis of loan and corrective actions information.
*One of the 21 loans was approved by SBA, which could prevent recovery from the lender

Read Part One:
OIG Schedule of Questioned SBA Guaranty Payment – Part 1

Read Previous Reporting:
SBA Hot Topic Tuesday — OCRM Recommends Improvements for Risk Management and Lender Oversight

SBA OIG Report 20-03