Playing the 'Big Six Wheel' in Las Vegas has better odds than large tranches of the Small Business Administration's loan portfolio
- ever paying off.
OPENTHEBOOKS SNAPSHOT OVERSIGHT REPORT - TRUTH IN LENDING:
THE SBA's $24.2 BILLION BAD LOAN PORTFOLIO
The motto of the Small Business Administration (SBA) is as all-American as apple pie: "The SBA helps Americans start, build and grow businesses." In January of 2012, President Barack Obama elevated the Administrator of the Small Business Administration to a cabinet level position. But proponents of the SBA will be hard pressed to defend some very poor decisions: 160,000 lending transactions defaulted since 2000 with charge-offs on $18 billion in failed lending. In some years, thirty-percent of all SBA lending was charged-off against SBA reserves (taxpayers).
The SBA administration has a goal of ‘zero-subsidy’ – a new ‘self-funded’ lending operation. But, in the latest figures available from the Congressional Research Services, the SBA took nearly $1 Billion in Congressional appropriation.
PICKING THE LOSERS OVER THE WINNERS
AT THE U.S. SMALL BUSINESS ADMINISTRATION
Forbes | September 7, 2016
It's like apple pie and baseball. The U.S. Small Business Administration finances the American Dream... or does it?
Here's a sample of our findings:
- In some years, such as 2007, one of every three SBA loans was "charged-off" against taxpayers.
- The $24.2 billion bad loan portfolio at the SBA (2000-2015) is larger than the annual budgets of 26 states.
- 1.4 million workers were dislocated when they lost their jobs after an SBA backed company went belly-up.
Click here to see an interactive map of the $24.2 billion in failed SBA loans since 2000. Who did the SBA fund in your ZIP code that "charged-off" their loan?
Why is government in this business? The SBA picked 160,000 losers amounting to $24.2 billion in lending since 2000.