The House Small Business Committee, led by Chairman Sam Graves (R-MO), today held a hearing to examine the Small Business Administration’s (SBA) management of its capital access programs with a special focus on the ad hoc procedures used to manage those operations.
At this hearing, Members of the Committee questioned SBA Administrator Karen Mills about the Administration’s responsibility for a credit and equity portfolio of more than $90 billion, and charges that the SBA has failed to adequately manage risk in its lender oversight.
“Small businesses are critical to our economy, and the Small Business Administration plays a vital role in meeting the credit needs of thousands of small firms,” said Chairman Graves. “In Fiscal Year 2013, the SBA requested a 67 percent increase in subsidy to cover the costs of its financing programs while lowering the overall lending amount available for small businesses. As the SBA financing programs become more expensive to operate, it is vital that we look for ways to reduce costs to taxpayers, while increasing opportunities for small businesses. This means making sure that the SBA is effectively managing its programs in a transparent manner, reducing paperwork burdens, and conducting effective oversight. Lending is a core function of the SBA that should be managed with the highest priority.”
SBA Administrator Karen Mills also testified before the Committee on this topic on October 26, 2011.
For related hearing documents, click here.