Press Releases

WASHINGTON – Today, Chairman Steve Chabot (R-OH) and the House Committee on Small Business heard from agency officials from the United States Small Business Administration (SBA) on the SBA Office of the Inspector General’s (OIG) March 6, 2018 report entitled, “Evaluation of SBA 7(a) Loans Made to Poultry Farmers.”

“The subject of today’s hearing is further justification that more oversight of the SBA is needed to ensure that taxpayer dollars are preserved for small businesses that cannot qualify for traditional lending,” said Chairman Chabot. “A recent evaluation by SBA’s Office of Inspector General confirmed what the Committee had already suspected: SBA may have allowed nearly $2 billion of ineligible guaranteed 7(a) loans to non-small businesses.  OIG’s findings are troubling, as it appears that many small poultry farmers were unable to operate their businesses independently, thus violating SBA’s affiliation rules and other regulations.”

Increasing Access to Capital While Protecting Taxpayer Dollars

Over the last few months, the Committee has heard from experts and small business owners on the hardships small businesses face in today’s economy. Despite the recent economic recovery, many are concerned about the lack of access to capital.

“We found that 7(a) loans made to growers did not meet regulatory and SBA requirements for eligibility. …Therefore, SBA and lenders approved 7(a) loans to growers that appear ineligible under SBA size standard regulations and requirements,” stated Mr. Hannibal “Mike” Ware, Acting Inspector General at the United States Small Business Administration in Washington, DC.

 “The [SBA] Office of Capital Access is currently evaluating our policies to determine if any modifications are needed. Soon after joining the SBA, I began an examination of various loan policies and practices in my office,” said Mr. William Manger, Associate Administrator of the Office of Capital Access at the United States Small Business Administration in Washington, DC. “As we continue to conduct our review of poultry lending, we want to hear from all stakeholders, and I would certainly welcome the views of this Committee and your Senate counterparts.”

In an effort to ensure the integrity of the 7(a) Loan Program for small businesses that truly need SBA’s capital, House Small Business Committee Chairman Steve Chabot, along with Ranking Member Nydia Velázquez (D-NY), introduced H.R. 4743, the Small Business 7(a) Lending Oversight Reform Act of 2018. The bill would institute reforms and increase lender oversight.

Click here to read full testimonies, and here to watch the hearing.

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