SBA Director Issues Final Report

SBA head, Maria Contreras-Sweet, issued her final report as she will be replaced with the new Trump administration.  You can down load the report here: sba-exit-memo.

Contreras-Sweet noted that early in the financial crisis crisis, SBA fought to protect small businesses from the worst of the downturn. As the economy rebounded, SBA worked to ensure that small businesses continued to share in that recovery.  She noted that the SBA focused on four areas:
1. Improving access to capital by modernizing our programs and systems.
2. Expanding opportunities for entrepreneurs from every corner of our nation.
3. Improving support structures for entrepreneurs and catalyzing high-growth, high-impact startups.
4. Broadening access to global markets through exporting.

Since 2009, Contreras-Sweet noted, the SBA guaranteed $179 billion in small business loans, more than any other administration in history. Annual SBA lending in the largest programs was up more than 160 percent since the depths of the recession according to the memo.

The number of SBA loan defaults spiked during the recession, however.  In 2004 the default rate was 2.4% but rocketed to nearly 12% by 2009.  Former business owner continue to feel the pressure of SBA loan defaults, which occurred during the recession.  No statute of limitations exists as to the government's ability to collect on SBA loan defaults and, therefore, even a default that occurred in 2009, for example, remains subject to government collection.

The incoming SBA administrator will face better economic conditions going forward but the results of the recession on SBA loan guarantors will continue.