U.S. Small Business Administrator Karen Mills released the following statement today regarding the SBA's Final Decision to permanently revoke EDF Resource Capital, Inc.'s (EDF) authority to participate in the 504 loan program and to permanently transfer its SBA 504 loan portfolio:
"The U.S. Small Business Administration has no tolerance for fraud, waste, abuse or any other form of regulatory non-compliance in any of our programs. SBA is committed to ensuring small businesses have the access to capital they need to start, grow and succeed, while protecting the taxpayer dollars that are on the line. To that end, over the past four years SBA has increased oversight and enforcement of all lenders participating in our lending programs. Today, based upon the regulatory non-compliance grounds set forth, SBA issued a Final Agency Decision to permanently revoke EDF's ability to participate in the 504 lending program and to require EDF to permanently transfer its entire 504 portfolio of SBA loans to a third-party servicer acting on SBA's behalf. "
For more information the Agency Decision in its entirety can be found here.
Download the PDF for full text.