**GAO-08-995**                      Published: Sep 24, 2008. Publicly Released: Oct 21, 2008.                  

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## Highlights

Over the past 6 years, the Small Business Administration (SBA) has sought to transform the agency and improve its operations. A major focus of transformation was to centralize the remaining loan functions performed by 68 district offices. SBA's implementation of early transformation efforts did not reflect key practices GAO recommended in a 2003 report as important for successful transformations. Consequently, its centralization of the guaranty purchase process for one of its loan programs resulted in backlogs and other problems reported by SBA's Inspector General. Some of SBA's actions also led to a reduction in staff at district offices and a decline in employee morale. GAO was asked to assess how SBA has (1) responded to GAO's 2003 recommendations, (2) addressed the impacts of transformation on employees, (3) defined the roles and responsibilities of district offices, and (4) assessed the centralization of loan functions. GAO reviewed documents related to SBA's transformation and reform efforts, interviewed SBA officials, and analyzed SBA employee survey data. GAO also visited 10 district offices and two centers and interviewed groups of employees.

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## Topics

Business Regulation and Consumer Protection

AccountabilityBest practicesEmployee retentionEmployee trainingEmployeesFederal agenciesFederal agency reorganizationHuman capital managementInternal controlsJob satisfaction surveysLending institutionsLoansPerformance managementPerformance measuresProgram managementQuality assuranceStrategic planningBusiness planningBusiness transformationTransparency