Federal Reports

This report presents the results of our verification inspection of the U.S. Small Business Administration’s (SBA) corrective actions for the two recommendations from the Office of Inspector General (OIG) audit report SBA’s 504 Loan Liquidation Process (Report 16-23). SBA’s 504 Certified Development Company (CDC) Loan Program provides small businesses with long-term, fixed-rate financing for the purchase of land, buildings, machinery, and other fixed assets. The loans are funded through a variety of sources, including private sector lenders, proceeds from selling SBA-guaranteed debentures, and borrower equity investments. A third-party lender must provide at least 50 percent of the project’s financing, while the CDC provides up to 40 percent through a 100 percent SBA-guaranteed debenture and the applicant provides at least 10 percent. SBA is responsible for liquidating the assets in the event of a default on the loan. Specifically, SBA’s Fresno and Little Rock Commercial Loan Service Centers (CLSC) are responsible for managing 504 loan liquidation operations. We initiated this verification inspection to determine the extent to which SBA (1) effectively managed and monitored the 504 loan liquidation portfolio and (2) maximized recovery when liquidating 504 loans. Accordingly, our objective was to determine the effectiveness of SBA’s actions for establishing a training plan and holding training courses on 504 loan liquidations for both CLSCs and continuing to review CLSC internal guidance, systems, and practices to ensure that 504 loans are liquidated consistently nationwide.We determined that SBA effectively implemented corrective actions for both recommendations.

The fiscal year (FY) 2025 management and performance challenges directly relate to the U.S. Consumer Product Safety Commission’s (CPSC) mission of “Protecting the public from hazardous consumer products” and address the CPSC’s Strategic Goal 4: Efficiently and effectively support the CPSC’s mission. The challenges currently facing the CPSC are similar to those reported in previous years. However, the agency seems to be bringing a new sense of urgency to dealing with many of these issues. Indeed, progress has been reported by the agency in a number of areas.

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