Small Business Lending Fund: Soundness of Investment Decisions Regarding Early-Entry Institutions into the SBLF Program.

摘要

The report presents the results of our audit of investment decisions involving banks admitted to the Small Business Lending Fund (SBLF). SBLF is a fund created to provide capital to community banks with assets of less than $10 billion with incentives to stimulate small business lending. The audit objective was to dertmine whether the initial group of institutions approved for participation in the SBLF program was financially sound and able to meet SBLF repayment and dividend obligations. The audit focused on 23 of the first 55 participants approved for funding and on Treasury's implementation of the investment decision process. To further evaluate the effectiveness of the decision process, the authors followed up on our previous report recommendation that Treasury obtain more robust information from the appropriate federal regulators on the financial health of institutions seeking funding.