**GAO-07-769**                      Published: Jul 13, 2007. Publicly Released: Aug 13, 2007.                  

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## Highlights

The Small Business Administration's (SBA) 7(a) program, initially established in 1953, provides loan guarantees to small businesses that cannot obtain credit in the conventional lending market. In fiscal year 2006, the program assisted more than 80,000 businesses with loan guarantees of nearly $14 billion. This report examines (1) the program's purpose, based on its legislative history, and performance measures; (2) evidence of constraints, if any, affecting small businesses' access to credit; (3) the types of small businesses served by 7(a) and conventional loans; and (4) differences in SBA's estimates and reestimates of the program's credit subsidy costs. GAO analyzed agency documents, studies on the small business lending market, and data on the characteristics of small business borrowers and loans.

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## Topics

Business Regulation and Consumer Protection

Cost analysisCreditGovernment guaranteed loansLending institutionsLoan interest ratesMinority businessesPerformance measuresProgram evaluationSmall businessSmall business assistanceSmall business loansSubsidiesProgram goals or objectives