Loan Monitoring System: SBA Needs to Evaluate Use of Software

Citation
Government Accountability Office, Loan Monitoring System: SBA Needs to Evaluate Use of Software (GAO-02-188) (Nov. 30, 2001) (full-text).

Overview
The Small Business Reauthorization Act of 1997 requires the Small Business Administration (SBA) to complete mandated planning activities before developing a loan monitoring system (LMS). In February 2000, the GAO testified that the SBA had made substantial progress in completing the mandated planning actions and made recommendations on additional steps needed for each action, and for project management and control of LMS.

In August 2000, the GAO found that SBA had completed its work on only one recommendation. SBA's actions to develop and implement LMS software were not consistent with the Small Business Reauthorization Act of 1997 and SBA's agreement with the House Committee on Small Business not to acquire hardware or software before completing the mandated planning. These actions could result in significant project cost increases and delays.