Therefore, during the evaluation of a loan package, lenders should be able to recognize various indicators of fraud. It is very important to obtain the serial numbers of machinery and equipment when it is pledged to the SBA for collateral. Fraud is generally defined as deception brought about by misrepresentation of facts, or the omission of facts. In other words, fraud is deception with the object of gaining by another s loss. The false documents or statements must be material to the officials involved in the loan approving process.
Most false statements occur on loan applications, financial statements, and supporting documents.
Mistakes, inadvertence, reliance on others, honest differences of opinion, do not constitute willful intent. You can initially do this by telephone and then, if requested, follow-up in writing to your nearest OIG office. The SBA Office of General Counsel tallied all Loan Authorization Review Reports reviewed by field counsel which were returned to Finance for corrections during the period beginning March 2000 through February 2001. Congress appropriated line item grants to build economic development facilities, make micro-loans and develop tourism. The New Markets Venture Capital program provides grants to venture capital companies to provide technical assistance to small businesses in low income areas.