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CED-82-57 1 (1982-04-06)

handle is hein.gao/gaobabdcu0001 and id is 1 raw text is: REPORT BY THE U S. General Accounting Office Additional Efforts Are Needed To Minimize Lease Guarantee Losses In 1976, the Small Business Administra- tion discontinued its program for guar- anteeing rent payments on C'ommercial and industrial space for small businesses. However, SBA remains contingently liable for outstanding guarantees and pays rent in the event of defaults on leases. The majority of lease guarantee defaults are resolved and losses minimized through either rerentals or settlements with the lessors. However, SBA has made sub- stantial monthly rent payments for some properties that have remained vacant or are occupied by tenants who do not pay rent. In some of these cases, SBA field offices have not reviewed lessor rerental activities and have no assurance that efforts are made to minimize SBA payments. GAO questions whether some lessors are making more than a minimum rerental effort to comply with the guarantee agreement. In two cases GAO reviewed, SBA field offices have not pursued rent collections that could offset SBA losses. GAO makes recommendations to the Administrator, SBA, to improve the servicing of lease guarantee defaults. < D ST%'J 118092 CED-82-57 *'fCcout4l APRIL 6, 1982