Rural Development: Rural Business-Cooperative Service Business Loan Losses Page: 11 of 29
The following text was automatically extracted from the image on this page using optical character recognition software:
that it would use our findings to support future consideration of regulatory
changes clarifying its requirements for obtaining and analyzing feasibility
studies. The Department also provided a few technical comments, which
we incorporated as appropriate. The Department's comments are
presented in appendix II.
Metho dolo gy
To identify loans made during fiscal year 1994 through fiscal year 1998 on
which losses occurred, we obtained and analyzed information from the
computerized databases in USDA's Rural Development agency's St. Louis,
Missouri, Finance Office, where financial and statistical data on business
loans are maintained. We did no t verify the accuracy o f the info rmatio n
contained in these databases. We selected four states-Texas, Missouri,
Maine, and Pennsylvania-for visits because they had the highest numbers
of delinquent and problem loans during the period. During our state office
visits, we reviewed Service loan files and interviewed knowledgeable staff.
In addition, for loans that incurred losses during the same 5-year period
for the 11 states with loan losses that we did not visit, we obtained and
reviewed specific documentation from each loan file, such as the loan
project summary, lender's credit analysis, feasibility study, business plan,
reports of visits with the borrower, and reports of delinquencies and
losses. We also obtained information about the quality control reviews the
Service conducts of its field offices. We performed our work from
February through July 1999 in accordance with generally accepted
government auditing standards.
As agreed, unless you publicly announce its contents earlier, we plan no
further distribution of this report until 30 days after the date of this letter.
At that time, we will send copies of this report to the appropriate Senate
and House committees; interested Members of Congress; the Honorable
Dan Glickman, Secretary of Agriculture; the Honorable Dayton Watkins,
Administrator o f the Rural Business-Cooperative Service; the Honorable
Jacob Lew, Director, Office of Management and Budget; and other
interested parties. We will also make copies available to others upon
GAO/RCED-99-249 Rural Business and Industry Loans
Here’s what’s next.
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
United States. General Accounting Office. Rural Development: Rural Business-Cooperative Service Business Loan Losses, report, August 25, 1999; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc290922/m1/11/: accessed May 26, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.