We evaluated the department's process for compiling this data. Based on this review, we identified weaknesses in the process used to compile this information which raises questions as to the accuracy of this data. We found the program generally takes credit for jobs created or retained even though other programs also played a role in financing the business. Department records indicate that since program inception, the program has created 730 new jobs in the state and retained over 560 existing jobs. The department relies on estimates borrowers provide to the local MBDCs when loan documents are signed.
Limited verification takes place to ensure the accuracy of the information provided.
We also noted examples where business ventures were unsuccessful and borrowers obtained other employment so they could pay off the loan. Department records are not updated to account for these situations so the program continues to report jobs created and retained that no longer exist. The department should develop outcome measurements for the Microbusiness Finance Program. It also needs to establish a system to collect information and measure program outcomes.