ROM 10-18 - Notice of Finding and Recommendation on Lender-Approved ARC Loans to Affiliates

The Office of Inspector General (OIG) conducted an audit of the America's Recovery Capital (ARC) Loan Program to determine whether SBA: (1) implemented adequate program guidance to achieve the ARC Loan Program's legislative goals; and (2) conducted effective oversight of the ARC Loan Program. This Notice of Finding and Recommendation (NFR) is intended to provide the Agency with early notification of findings and recommendations related to the approval of ARC loans to potentially affiliated companies. We identified 38 lender-approved ARC loans made to apparently affiliated companies that were not approved by SBA, as required by the ARC Loan Program procedural guide.