SBA, Agency Financial Report FY 2012 (Supplementary Information)

Summary

This is the Supplementary Information section of the SBA Agency Financial Report for FY 2012. Its contents list SI 1 - SBA Programs and Offices, SI 2 - Strategic Plan FY 2011-2016 with an Addendum, and SI 3 - Detail of OIG Audit Follow-up Activity. SI 1 describes SBA offices, among them the Office of Capital Access, the Office of the Chief Information Officer, the Office of Disaster Assistance and the Office of Inspector General. The follow-up detail includes Report #11-14 on funding of information technology contracts awarded to Isika Technologies, Inc., with final action estimated for 6/30/13, and Report #11-16 on Banco Popular's assessment of borrower's repayment ability, estimated for 10/31/12.

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“SBA, Agency Financial Report FY 2012 (Supplementary Information).” Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-agency-financial-report-fy-2012-supplementary-information-537f0cec42/, SHA-256 55b9adf91eb90c409329b1bffe227d1c1bb3f6569ddaf6ef84b0ca964b5f4b7e.

Full text

Supplementary Information

Table of Contents
SI 1 – SBA Programs and Offices

SI 2 – Strategic Plan FY 2011-2016
Addendum to Strategic Plan FY 2011-2016

SI 3 – Detail of OIG Audit Follow-up Activity

Agency Financial Report ▪ FY 2012
SI 1 – SBA Programs and Offices
Center for Faith-based and Neighborhood Partnerships

Faith-based and community organizations can play an important role in helping the SBA reach, train, and
finance the entrepreneurs whose businesses bring jobs and hope to communities all across the nation.
The Center for Faith-based and Neighborhood Partnerships promotes SBA partnerships with faith-based
and community organizations to help build awareness of SBA’s programs that can transform
neighborhoods and change lives. Additionally, the office informs faith-based and neighborhood
organizations of SBA’s loan programs that require non-profit intermediary participation and actively
encourages qualified organizations to apply for certification as microloan intermediaries.

Office of Capital Access

The Office of Capital Access assists small businesses in obtaining the loans necessary for growth by
being a gap lender, providing assistance to small businesses that otherwise would not qualify for
unguarantied financing, obtaining equity, or taking advantage of contracting opportunities.

The 7(a) loan program requires SBA lending partners to certify that the applicant was unable to qualify for
loans elsewhere on reasonable terms. The 504 program, which has a statutorily mandated job creation
component, fills another lending gap by providing long-term, fixed rate financing for major assets such as
real estate and heavy equipment. Surety Bond Guarantee is a program that serves as a gap surety bond
credit provider, expanding the bond credit and capacity of small contractors that would not otherwise be
able to compete for public and private work. The Office of Credit Risk Management provides risk
management based on monitoring, reviewing, and oversight of the 7(a) and 504 lenders and microloan
intermediaries; and monitoring and analysis of the 7(a), 504, microloan and disaster portfolios.

Office of the Chief Information Officer

The Office of the Chief Information Officer provides information technology leadership, products, services
and operational support for the SBA. The chief information officer is the principal advisor to the
Administrator on information technology matters and has overall responsibility for developing, managing
and monitoring SBA-wide IT systems, projects, personnel and expenditures. The office provides
information technology governance support to the Agency, ensuring that the SBA manages its current
and prospective IT investment portfolio in accordance with the laws, regulations and policies applicable
across government.

The OCIO manages SBA’s functional IT units encompassing systems development, operations, voice
and data communications, and user support. Directly or through contractors, the OCIO has responsibility
for over 80 current, mission oriented IT systems that support SBA program delivery and enable the
Agency to equip and outfit its employees with current hardware, software and computing tools such as
email, wireless capabilities, and remote access for telecommuters. This office manages and maintains
SBA’s web presence on www.sba.gov. It is also the Agency’s lead office for information security, data
privacy, electronic identity protection and incident reporting, including information technology aspects of
COOP, continuity of operations planning.

Office of Communications and Public Liaison

The Office of Communications and Public Liaison has the principal responsibility for developing and
implementing effective communications strategies to ensure that SBA’s mission, programs, services and
initiatives are articulated clearly and consistently to the American public in general and the small business
community in specific. It supports field and program offices with planning and implementation of effective
communications strategies. OCPL plays the chief role in articulating, explaining and promoting Agency
policy and goals to the national news media.

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Agency Financial Report ▪ FY 2012
Through Community Relations and the Office of Strategic Alliances within OCPL, the SBA forms alliances
with for-profit corporations, small businesses, non-profit organizations, trade and professional
associations, academic institutions, and public-sector agencies. The alliances offer opportunities to
network on areas of common interest.

This office manages the web content on www.sba.gov and is the federal managing partner for Business
Gateway, www.business.gov, a program integrating web resources to provide small businesses and
aspiring entrepreneurs with information services that save time and money, engage citizens to participate,
and enable collaboration across all levels of government.

Office of Congressional and Legislative Affairs

The Office of Congressional and Legislative Affairs assists in the development of SBA legislative
programs and serves as the communications focal point on legislation and congressional activity. CLA
monitors legislation and policies introduced by Congress and government agencies to determine their
effects on the SBA and small business. It furthers the goals of the SBA and enables Members of
Congress to best serve their small business constituencies by promptly providing accurate, current, and
continuous information to Congress, congressional committees, and others interested in SBA programs. It
also devises and implements legislative strategy and has primary responsibility for all matters relating to
the congressional and legislative functions of the SBA. CLA provides liaison with legislative personnel at
the White House, the Office of Management and Budget, and various federal departments and agencies.
It coordinates with SBA program and field offices to ensure continuity and consistency in SBA’s
communications with Congress; and, it coordinates all Government Accounting Office activities with the
SBA.

Office of Disaster Assistance

The Office of Disaster Assistance plays a vital role in the aftermath of disasters. Through ODA, the SBA is
responsible for providing affordable, timely, and accessible financial assistance to homeowners, renters,
and businesses of all sizes affected by disaster. Financial assistance is available in the form of low-
interest, long-term loans. SBA disaster loans are the primary form of federal assistance for the repair and
rebuilding of non-farm, private sector disaster losses. For this reason, the disaster loan program is the
only form of SBA assistance not limited to small businesses. ODA makes physical disaster loans and
economic injury disaster loans. Physical disaster loans are for permanent rebuilding and replacement of
uninsured or underinsured disaster-damaged privately-owned real and/or personal property. They are
available to homeowners, renters, businesses of all sizes and nonprofit organizations. Economic injury
disaster loans provide necessary working capital until normal operations resume after a disaster. They
are restricted to small businesses and non-profit organizations.

Office of Disaster Planning

The Office of Disaster Planning reports directly to the SBA Administrator and is responsible for integrating
disaster planning, preparedness activities and disaster response programs for all SBA offices. This office
also acts as the Agency Continuity of Operations Coordinator.

The Office of Disaster Planning provides Agency coordination in utilizing SBA resources to assist citizens,
communities and businesses in responding to disaster occurrences and long-term recovery needs. It also
represents the SBA on various inter-governmental bodies related to disaster response and recovery and
works to ensure that the Agency and its resource partners coordinate effectively to help serve disaster
victims.

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Agency Financial Report ▪ FY 2012
Office of Entrepreneurial Development

The Office of Entrepreneurial Development (OED) is the front door to America’s small businesses.
Through online training, strategic partnerships, and a vast resource partner network, OED supports over
a million clients annually as they start, sustain and grow their small businesses. From underserved urban
and rural communities to mainstream and high growth small businesses in all regions and industries,
OED provides the path to growth. OED’s network of business counselors, mentors and trainers reaches
into communities across America through Small Business Development Centers, Women’s Business
Centers and SCORE chapters. This network of resource partner business experts provides face-to-face
and online counseling, training and mentoring to help small businesses develop strategic plans, conduct
market studies, implement new technologies, access needed capital, and much more.

Office of Equal Employment Opportunity and Civil Rights Compliance

To advance Agency-wide diversity at all levels and equal access to programs and activities receiving SBA
financial assistance, this office works to prohibit discrimination against all SBA employees and applicants
based on race, color, sex, age, religion, disability, national origin, and retaliation for opposition to
discriminatory practices or participation in the EEO process. The office of EEO and CRC also works to
achieve equal employment opportunity for all qualified employees consistent with the nation’s workforce
diversity. The office works to ensure that no person in the U.S. is denied the benefits of, excluded from
participation in, or subjected to discrimination under any program or activity receiving SBA financial
assistance based on race, color, sex, age, disability, national origin, and marital status (extension of
credit). In addition, the office ensures that individuals with disabilities have equal access to SBA-
conducted or co-sponsored programs and activities.

Office of the Executive Secretariat

The Office of the Executive Secretariat works with senior management officials to formulate the
Administrator’s and Deputy Administrator’s written correspondence. Under the leadership of the Deputy
Associate Administrator for Management and Administration, ExecSec reviews, edits, and manages
correspondence. ExecSec ensures that correspondence and written products are delivered in the most
timely and efficient manner while providing useful reliable information and advice to Congress, other
federal agencies, and small business owners nationwide.

Office of Field Operations

The Office of Field Operations represents SBA field offices at headquarters. OFO is responsible for the
direct execution of SBA products and services. The office establishes and monitors performance goals for
10 regional and 68 district offices. It provides policy guidance and oversight to regional administrators and
district directors in implementing Agency goals and objectives and in solving problems in specific
operational areas. It establishes and monitors performance goals for district offices; provides associate
administrators, program heads, and the general counsel with a vehicle for overseeing field office program
and policy implementation; provides feedback to headquarters management regarding the performance
of their programs; ensures that field offices have adequate input to all policy formation and participate in
policy deliberations at headquarters; organizes reviews of field offices; informs the SBA Administrator of
field activity; and, when necessary, the Office of field Operations provides coordination with the Office of
Disaster Assistance.

Office of General Counsel

The Office of General Counsel provides legal advice in support of all SBA programs and initiatives. The
office helps minimize the Agency’s legal risks and costs, reduce litigation exposure, and monitors
compliance with applicable statutes, regulations, Executive Orders and other legal requirements. OGC
provides the legal support necessary to defend SBA’s interest in judicial and administrative actions and

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Agency Financial Report ▪ FY 2012
proactively represents the Agency in all legal matters that arise in the context of its financial assistance,
procurement and contracting programs, as well as labor and employment disputes.

Office of Government Contracting and Business Development

The Office of Government Contracting and Business Development promotes increased small business
participation in the federal contracting market for goods and services. It fulfills SBA’s statutory mission to
ensure that a fair share of federal contracting goes to small businesses.

Working with federal agencies, the SBA negotiates procurement goals, monitors performance,
encourages the use of small business sources, provides procurement training and technical assistance to
small firms, and provides policy direction and guidance to federal agencies. Several of the government-
wide goals are statutory, including small businesses, small disadvantaged businesses, women-owned
small businesses, HUBZone small businesses, and service-disabled veteran-owned small businesses.

Office of Grants Management

The Office of Grants Management awards and administers all grants under SBA’s authorization and
appropriations, with the exception of the small business development center and women’s business
center grants which are awarded and administered by the respective program offices. In the case of
congressional earmark grants, the OGM serves as the technical representatives for the grants as well.
The director of OGM serves as SBA’s senior grant officer and represents the Agency on all interagency
grant-related policy making groups.

Office of Hearings and Appeals

The Office of Hearings and Appeals was established in 1983 to provide an independent, quasi-judicial
appeal of certain SBA program decisions. OHA formally adjudicates disputes rising in numerous
jurisdictional areas. These include appeals regarding SBA formal size determinations; appeals from
contracting officer designations of the North American Industry Classification System codes for
procurements government-wide; appeals regarding certain SBA determinations relating to development
companies; and appeals from Agency and private certifier small disadvantaged business determinations,
all of which, by regulation, may be decided either by an administrative judge or an administrative law
judge. OHA’s jurisdiction also includes 8(a) Business Development program eligibility, suspension, and
termination appeals, and salary offset appeals, all of which, by statute, must be decided by an
administrative law judge.

Office of Human Resources Solutions

The Office of Human Resources Solutions develops and provides innovative human capital strategies.
The OHRS advises SBA management with respect to selecting, developing and managing a high-quality,
productive workforce. This office sets SBA’s workforce development strategy; assesses current workforce
characteristics and future needs based on SBA’s Strategic Plan; aligns human resources policies with
organization mission, strategic goals, and performance outcomes; develops and advocates a culture of
continuous learning to attract and retain employees with superior abilities; identifies best practices and
benchmarks studies; and creates systems for measuring intellectual capital and identifying links of that
capital to organizational performance and growth. This office also implements laws, rules and regulations
governing the civil service.

Office of the Inspector General

The Office of Inspector General is an independent office created by law within the SBA to conduct and
supervise audits, investigations, and other reviews relating to SBA programs and supporting operations;
detect and prevent waste, fraud, and abuse; and promote economy, efficiency, and effectiveness in the
administration and management of SBA programs. The Inspector General keeps the SBA Administrator

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Agency Financial Report ▪ FY 2012
and the Congress fully informed of any problems, recommends corrective actions, and monitors progress
in the implementation of such actions. The two operating components of the OIG are the Auditing Division
and the Investigations Division. The Auditing and Investigations Divisions each administer their respective
activities through staff located in various locations around the country. The Management and Policy and
Counsel Divisions support both the Inspector General and the operating divisions by providing policy,
planning, administrative, and legal services, respectively.

Office of International Trade

The Office of International Trade enhances the ability of small businesses to compete in the global
marketplace by facilitating access to capital and technical assistance to support international trade,
ensuring the interests of small business are considered and reflected in trade negotiations, and
supporting and contributing to the U.S. government’s international commercial and economic agenda.

Office of Investments and Innovation

The Office of Investments and Innovation assists small businesses through the administration of the
Small Business Investment Company (SBIC) and the Small Business Innovation Research (SBIR)
programs. SBICs are privately owned and managed investment funds that are licensed and regulated by
the SBA. They use their own private capital plus funds borrowed with an SBA guaranty to make
investments in qualifying small businesses, especially those with potential for substantial job growth and
economic impact. The SBIR program helps small businesses develop innovations to meet the research
and development needs of the federal government and then commercialize those innovations in the
marketplace. In addition to helping meet federal research and development needs, the SBIR can advance
American innovation and competitiveness in the broader economy.

Office of Management and Administration

The Office of Management and Administration is responsible for all aspects of personnel, employee
relations, grants management, space management, mailroom operations, and controlled correspondence.
The office oversees the Office of Human Resources Solutions, the Office of Grants Management, the
Office of Administrative Services, and the Office of the Executive Secretariat.

Office of the National Ombudsman

The Office of the National Ombudsman fosters a more small business-friendly federal regulatory
enforcement environment by assisting small businesses when they experience excessive federal
regulatory enforcement actions such as repetitive audits or investigations, excessive fines, penalties,
threats, retaliation, or other unfair enforcement action by a federal agency. It does this by evaluating how
federal agencies treat small businesses during enforcement or compliance actions.

Office of Native American Affairs

The SBA, through its Office of Native American Affairs, coordinates Native American initiatives and
develops policies and procedures to ensure that SBA assistance is made available to American Indians,
Alaska Natives and Native Hawaiians. The initiative consists of three major components — marketing,
outreach, and training — to enhance business opportunities.

Office of Performance Management and the Chief Financial Officer

The Office the Chief Financial Officer conducts and promotes effective financial management activities for
the SBA including budget, credit subsidy, financial operations, financial systems, internal controls, and
acquisitions. It develops and maintains integrated accounting and financial management systems; directs,
manages, and provides policy guidance and oversight of all Agency financial management personnel,
activities, and operations; approves and manages financial management systems design and

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Agency Financial Report ▪ FY 2012
enhancement projects; establishes and implements Agency-wide policies for management integrity and
audit follow-up, including internal controls; develops budgets for financial management operations and
improvements; implements Agency asset management systems; monitors the financial execution of the
Agency budget in relation to actual expenditures; and develops policies and procedures for the
acquisition of supplies, equipment, and non-personnel services.

The Office of Performance Management provides tools and guidance to assist the Agency in driving
performance improvement efforts across the organization. It also helps the Agency develop better
performance measures in order to facilitate SBA’s continued movement from measuring activity outputs to
measuring programmatic and Agency outcomes. It builds Agency capacity for results-based management
through data-driven reviews and analysis, training and outreach to program offices. The office supports
the Agency’s strategic planning and prepares annual accountability and/or performance reports.

Office of Veterans Business Development

The Office of Veterans Business Development conducts comprehensive outreach on behalf of the
Agency and is responsible for the formulation, execution, and promotion of policies and programs of the
Administration which advance and support veteran entrepreneurship. To accomplish this OVBD operates
a national outreach initiative and provides direct service delivery through funding agreements with
resource partners, coordination of outreach and service delivery with other federal agency partners, and
development of Agency program initiatives.

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Agency Financial Report ▪ FY 2012
SI 2 – Strategic Plan FY 2011-2016
Addendum to Strategic Plan FY 2011-2016

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Agency Financial Report ▪ FY 2012
U.S. Small Business Administration
Strategic Plan
Fiscal Years 2011 - 2016
For more information on SBA programs visit: http://www.sba.gov/
(En Español: http://www.sba.gov/espanol/) or contact the SBA Answer
Desk (Centro de Información de la Agencia Federal para el Desarrollo
de Los Pequeños Negocios):
1-800-U-ASK-SBA (1-800-827-5722)
Send emails to: answerdesk@sba.gov
Answer Desk TTY: 1-704-344-6640
U.S. Small Business Administration
2011 - 2016 Strategic Plan

Table of Contents

Message from the Administrator ............................................................................................ 5
Overview................................................................................................................................... 6
Mission .................................................................................................................................................. 6
Core Values .......................................................................................................................................... 6
SBA Strategic Goals ................................................................................................................ 7
Strategic Goal 1: Growing businesses and creating jobs ............................................................... 7
Strategic Objective 1.1: Expand access to capital through SBA’s extensive lending network. ....... 7
Strategic Objective 1.2: Ensure federal contracting goals are met or exceeded by collaborating
across the federal government to expand opportunities for small businesses and strengthen
the integrity of the federal contracting certification process and data. .......................................... 8
Strategic Objective 1.3: Strengthen SBA’s entrepreneurial education, counseling and training
resources to help create new businesses and support the needs of existing businesses by
successfully focusing on core program resources and ensuring these resources are aligned
with the needs of both Main Street and High Growth Small Businesses. ..................................... 8
Strategic Objective 1.4: Ensure that SBA’s disaster assistance resources for businesses, non-
profit organizations, homeowners, and renters can be deployed quickly, effectively and
efficiently in order to preserve jobs and help return small businesses to operation. ..................... 9
Strategic Objective 1.5: Strengthen SBA’s relevance to high-growth entrepreneurs and small
businesses to more effectively drive innovation and job creation through both the agency’s
existing programs as well as new initiatives................................................................................ 11
Strategic Objective 1.6: Strengthen outreach to underserved communities and underserved
populations. ................................................................................................................................. 12
Strategic Goal 2: Building an SBA that meets needs of today’s and tomorrow’s small
businesses ......................................................................................................................................... 14
Strategic Objective 2.1: Strengthen SBA’s core programs and operations to ensure that they
are high performing, effective, and relevant to the needs of the small business community. ..... 14
Strategic Objective 2.2: Invest in SBA’s employees so they can more effectively serve small
businesses. ................................................................................................................................. 15
Strategic Objective 2.3: Mitigate risk to taxpayers and improve oversight across SBA
programs. .................................................................................................................................... 15
Strategic Goal 3: Serving as the voice for small business ........................................................... 17
Strategic Objective 3.1: Collaborate with other agencies to strengthen the delivery of
programs, resources and services. ............................................................................................. 17
Strategic Objective 3.2: Foster a small business-friendly environment by encouraging Federal
Agency awareness about the impact of unfair regulatory enforcement and compliance efforts,
reducing burdens on small business. .......................................................................................... 17
Strategic Objective 3.3: Promote the availability, analysis, and dissemination of the most
current, accurate, and detailed statistics possible on small business. ........................................ 18

SBA Strategic Plan – Fiscal Years 2011 - 2016 3
Appendices ............................................................................................................................ 19
Performance Planning ...................................................................................................................... 19
High Priority Performance Goals ..................................................................................................... 19
Performance Measures ................................................................................................................... 20
Communication and Accountability ................................................................................................ 20
External Factors ................................................................................................................................ 21
Program Evaluation(s) ...................................................................................................................... 23
Consultation and Outreach .............................................................................................................. 23
Organization Chart ............................................................................................................................ 24
Organization Map ..............................................................................................................................25

SBA Strategic Plan – Fiscal Years 2011 - 2016 4
Message from the Administrator:

Since 1953, the U.S. Small Business Administration (SBA) has helped America’s small
businesses grow and create jobs. By expanding access to capital, counseling, federal
contracts, disaster assistance, and entrepreneurial education, the SBA gives small business
owners the tools they need to strengthen our economy, drive American innovation, and
increase our global competitiveness.

This Strategic Plan provides a framework that will maximize the Agency’s strengths and
resources in order to help small businesses.

With this plan, the SBA will continue to serve both kinds of small businesses: “Main Street” and
“high-growth.” This dual focus is critical to sustaining the small business communities that
Americans need every day, while also growing the next generation of great U.S. companies
that will create thousands of well-paying jobs here at home.

This Plan is the result of extensive dialogue throughout the Agency, across the
Administration, and with leaders in the small business community. The process has resulted in
three overarching goals for the next five years:
1. Grow businesses and create jobs
2. Build an Agency that meets the needs of today’s and tomorrow’s small
businesses
3. Serve as the voice for small business
Each goal contains objectives which are directly tied to performance both at the individual level
and Agency-wide.

I am pleased to submit the SBA’s new Strategic Plan. These are challenging times, and the
SBA’s role in helping small businesses grow and create jobs has never been more important.

Sincerely,

SBA Strategic Plan – Fiscal Years 2011 - 2016 5
Overview
The U.S. Small Business Administration (SBA) helps Americans grow businesses and
create jobs by providing resources and tools, including access to capital; opportunities
in Federal contracting; access to entrepreneurial education; and disaster assistance for
businesses, non-profit organizations, homeowners, and renters.

SBA’s efforts to assist entrepreneurs and small business owners are especially critical
during these difficult times for the U.S. economy. Throughout America’s history, small
businesses have played a leading role as the driver of economic growth and job
creation. In fact, according to the Census Bureau’s Statistics of U.S. Businesses, more
than half of working Americans either own or are employed by a small business. Also,
over about the last decade, small businesses created nearly 65 percent of net new
private sector jobs.

Mission

The mission of the Small Business Administration (SBA) is to maintain and
strengthen the Nation’s economy by enabling the establishment and vitality of
small businesses and by assisting in the economic recovery of communities after
disasters.

Core Values

Outcomes Driven. We will clearly define the outcomes we are targeting and ensure
that our programs, processes and policies are aligned in achieving them.

Customer Focused. We serve people and will be responsive to their needs, both in the
services we provide and in how we deliver them.

Employee Enabled. Our people extend the hand of service to Americans every day,
and we must ensure employees have the tools, the training, and the support to be
effective.

Accountable, Efficient and Transparent. We have a bedrock obligation to the
taxpayer to manage efficiently, invest capital prudently, and be open and honest about
our results.

SBA Strategic Plan – Fiscal Years 2011 - 2016 6
SBA Strategic Goals

Strategic Goal 1: Growing businesses and creating jobs

Strategic Objective 1.1: Expand access to capital through SBA’s extensive lending
network.

Strategies
An improved experience for small businesses and lending partners is essential to
growth in the quantity of small businesses assisted and the quantity of active
lending partners. SBA’s increased use of technology will improve quality, and will
reduce the complexity of the lending process while making the process more
efficient. We will make SBA programs simpler and easier to use for small
businesses and lending partners. This will result in an SBA that is nimble and
facile enough to develop and introduce programs as market needs are presented.
We will leverage the Small Business Development Center (SBDC), SCORE, and
Women’s Business Center (WBC) networks and their relationships with the
financial community to help small business owners acquire capital.
1. Improve the Customer Experience Across Programs and Organizational
Units. Identify and act upon opportunities to improve incoming applications
and purchase requests in order to decrease cycle times, and to increase
efficiency and customer satisfaction. Monitor loan processing cycle times and
identify trends and opportunities for improvement.
2. Improve Outreach and Education for the Partner and Technical
Assistance Provider Community. Facilitate improved relationships with
resource partners and other local technical assistance providers and state
and regional economic development organizations. Develop online courses
to assist lending partners.
3. Improve Lender Outreach and Education. Continue making improvements
in today’s lender self-certification program while instituting a Lender
Certification Program. Creation and implementation of this Program will be
done in concert with industry partners. Certification will improve the quality of
compliance with SBA requirements. Continue to participate in trade
communication channels to help reach new lending markets and partners.
Continue to build relationships with lending trade groups as well as state
lending organizations.

Performance Indicators
• Small Businesses Assisted. Number of new businesses assisted through
7(a), 504 and Microloan programs.
• Active Lending Partners. Grow and/or maintain active lenders in all SBA
loan programs.
• Loan Dollars Approved. The long-term goal from Fiscal Year 2011 to Fiscal
Year 2014 is to assist small businesses through $74 billion in approved loans.
• Jobs Supported

SBA Strategic Plan – Fiscal Years 2011 - 2016 7
Strategic Objective 1.2: Ensure federal contracting goals are met or exceeded by
collaborating across the federal government to expand opportunities for small
businesses and strengthen the integrity of the federal contracting certification process
and data.

Strategies
1. Expand Outreach/Training to Small Businesses. Work in conjunction with
agencies and resource partners to conduct training, match-making, and
marketing events to small businesses through our network of offices. We will
also maintain and expand SBA’s online training courses.
2. Provide Outreach to and Training for Agencies. Provide contracting
officer training to agencies, and work with the Defense Acquisition University
and the Federal Acquisition Institute to update and develop small business
contracting courses. Work with interagency groups (e.g., Chief Acquisition
Officers Council, Small Business Procurement Advisory Council) to ensure
their awareness of the benefits of contracting with small businesses and to
improve the dissemination of “best practices”.
3. Increase Agency Accountability and Transparency. Work with agencies
on a biennial basis to set agency-level small business contracting goals.
Transparently measure agencies and track their achievements in support of
small businesses. Continue to refine the holistic scorecard methodology and
format to ensure agency accountability.
4. Increase Data Integrity. Increase the accuracy of small business contracting
data by working with the Office of Federal Procurement Policy to improve
systems and training to eliminate errors and fraudulent information.
5. Reduce Fraud, Waste, and Abuse. See details in Section 2.3.

Performance Indicators
Small Business Contracting Share
• Meet the statutory goal for 23 percent of federal prime contracting dollars
going to small businesses.
• Meet the federal prime contracting goals for small disadvantaged
businesses – 8(a) program participants (5 percent), women-owned small
businesses (5 percent), service-disabled veteran owned small businesses
(3 percent), and HUBZone firms (3 percent).

Strategic Objective 1.3: Strengthen SBA’s entrepreneurial education, counseling and
training resources to help create new businesses and support the needs of existing
businesses by successfully focusing on core program resources and ensuring these
resources are aligned with the needs of both Main Street and High Growth Small
Businesses.

SBA Strategic Plan – Fiscal Years 2011 - 2016 8
Strategies
1. Provide Programs, in conjunction with SBA resource partners, that are
Relevant to Small Businesses. Educate, train, counsel and mentor Main
Street as well as high-growth innovative companies with significant potential
to grow and expand (“gazelles”). Assist entrepreneurs in turning ideas and
concepts into new business ventures. Develop or expand counseling and
training programs focused on key areas, including underserved markets,
procurement, exports, and emerging and expanding technological sectors.
Assist new businesses through training courses, webinar series, and train-
the-trainer programs at industry events.
2. Improve the Execution of SBA Programs. Focus on educating and training
lenders and entrepreneurs through collaboration, and provide improved online
tools across SBA divisions and resource partners. Continue our customer-
focused approach to improving the effectiveness of management and
technical assistance programs at all stages of the small business cycle.
Develop and expand SBA offerings of new content, leverage Resource
Partners’ expertise, and become more agile in meeting emerging small
business training needs.
3. Improve the Technical Assistance Provided in Support of SBA
Programs. Improve the grant award process and oversight of awardee
performance to achieve program objectives. Encourage the development and
expansion of SBDCs into specially accredited Small Business Technology
Centers to support the unique needs of innovation-based small businesses
that have multi-market and exponential growth potential.

Performance Indicators
• Small Businesses Created. Number of new businesses created through
SBDCs, Women’s Business Centers and SCORE. The long-term goal from
Fiscal Year 2011 through Fiscal Year 2014 is to help create 37,000 small
businesses.
• Small Businesses Assisted. Number of businesses assisted through
Women’s Business Centers and SCORE.
• Long-Term Counseling Clients. Number of long-term counseling clients of
SBDCs.
• Capital Infusion. Dollar value of capital infusion that SBDCs helped to
secure for their clients.

Strategies
1. Enhance Emergency Preparedness and Recovery Assistance. Have a
field presence within three days of a disaster declaration. Make initial
disbursement within five days of the receipt of loan closing documents.
Employ a strategic communications plan focused on preparedness that

SBA Strategic Plan – Fiscal Years 2011 - 2016 9
utilizes SBA resource partners and outside partners to assist SBA with
preparedness messages and disaster recovery upon the occurrence of a
disaster.
2. Ensure Effective and Efficient Resource Deployment. Use the FEMA
HAZUS information in the SBA disaster staffing and scalability model to
ensure that SBA’s disaster assistance resources for businesses, non-profit
organizations, homeowners, and renters can be deployed quickly, effectively
and efficiently.
3. Improve Customer Satisfaction. Maintain and improve high levels of
customer satisfaction, both with respect to the loan application process and
post-approval, and measure results using an annual American Customer
Satisfaction Index survey. Our communication with customers indicates that
other than declined loan applications; the biggest concern is the availability of
financing when it is needed.
4. Expedite Referrals to Grant Providers. Use tools to enable us to refer
applicants to grant providers much more quickly, with less work for the
applicant and a significantly reduced processing burden for the SBA.
5. Improve the Insight into, and Evaluation of, SBA Operations. Use
enhanced loan portfolio models and performance metrics to give
management the ability to establish clear timelines for initiatives, clarify
performance goals, recognize individual accountability, and provide greater
insight into any operational challenges that SBA must address.
6. Leverage SBA’s Nationwide Infrastructure. Use non-disaster field staff, if
needed, for short-term support and long-term recovery. This includes
processing support, media outreach and coordination of local resources.
SBA District Offices will coordinate support of long-term recovery for disaster
events.

Performance Indicators
• Recovery Assistance (targets established annually)
o Percent of small businesses sustaining economic injury that remain in
operation 6 months after final disbursement
o Percent of small businesses sustaining physical damage that are in
operation 6 months after final disbursement
o Percent of homeowners that completed eligible disaster repairs within 6
months of final disbursement
o Percent of renters that completed eligible personal property replacement
within 6 months of final disbursement
• Customer Satisfaction. Customer satisfaction rates for approvals and
declines. Customer satisfaction targets are established annually.
• Loan Processing
o Percent of home loans processed within standard (goal of 85%)
o Percent of business loans processed within standard (goal of 85%)

SBA Strategic Plan – Fiscal Years 2011 - 2016 10
Strategic Objective 1.5: Strengthen SBA’s relevance to high-growth entrepreneurs and
small businesses to more effectively drive innovation and job creation through both the
agency’s existing programs as well as new initiatives.

Strategies
1. Improve Small Business Innovation Research (SBIR) Operations and
Commercialization.
Use improved metrics and reporting to enable more systematic monitoring of
fraud, waste and abuse. Continue to expand outreach and launch targeted
initiatives to make SBIR more entrepreneur-friendly. Improve
commercialization from existing awards by sharing best practices across
agencies.
2. Grow the Deployment of Long-Term Capital. (e.g., SBIC).
Grow SBA’s debenture program by drastically reducing licensing times, and
by leveraging the SBIC platform to act as a catalyst for private sector
investment in underserved markets. Define a road map for growth in areas
where there are market gaps, and launch new programs to meet those gaps.
Develop closer partnerships with investors and lending partners. Expand the
program to fill currently underserved areas in other parts of the market.
3. Provide Entrepreneurial Assistance to High-Growth Companies. Scale
today’s successful pilots into programs that support the needs of tomorrow’s
small high-growth firms. Capitalize on Small Business Technology
Development Center programs and the cadre of technology business
advisors to increase support and link high-growth potential companies to the
investment community and global markets.
4. Strengthen SBA’s export promotion and assistance programs.
Encourage small business exporting through the National Export Initiative and
provide assistance through financing, export readiness training, and
counseling. Increase emphasis on export promotion throughout the Field
Office network. Develop and implement a communications and marketing
plan to increase awareness of exporting and the export programs. Increase
export technical capabilities of SBA’s resource partners. Launch new
efforts, working with public and private sector partners, to support new-to-
exporting small businesses as well as current exporters expanding into new
markets. Increase the utilization of SBA’s export loan programs by
participant lenders. Collaborate with other federal agencies and export
assistance resources to tailor programs to better meet the needs of
companies with high-growth potential.
5. Support Regional Cluster Development. Use all traditional SBA programs,
including loans, entrepreneurial training, and technical assistance to support
the increased competiveness of geographic clusters of small businesses in
particular industries. Support these clusters through dedicated programs
such as the Regional Innovation Clusters program.

Performance Indicators
• SBIR Operational and Commercialization Improvements. Significantly
strengthen the SBIR program as the government’s premier innovation
program, deploying improved data collection, reporting systems, and

SBA Strategic Plan – Fiscal Years 2011 - 2016 11
performance metrics. Specific performance metrics will be added after we
complete building a performance management system that establishes the
current baseline of commercialization levels. The targets will focus on a
meaningful increase in the rate of commercialization above that baseline.
• Long-Term Capital Deployed. Double the amount of long-term capital
deployed in the SBIC program, and any other new programs, from the
average of $750 mil per year to $1.5 billion per year by Fiscal Year 2016.
• Number of Small Businesses Assisted through Export Assistance.
• Number of Small Businesses Assisted through SBIC.

Strategic Objective 1.6: Strengthen outreach to underserved communities and
underserved populations.

Strategies
1. Improve Access to Capital. Continue to assess capital access programs
and begin implementing permanent programs that help close identified gaps.
Build relationships with community development partners as well as faith
based and neighborhood partners to identify needs and develop strategies.
Continue to improve the relevance of SBA programs via these partnerships
as well as with credit unions, and minority business associations and lending
groups. Our products will be refined based on feedback received and our
ongoing and increasing understanding of the needs of our small business
customers and lenders.
2. Expand the Availability of Counseling and Training. Pursue strategies to
make our counseling and training programs more effective and more focused
on meeting the specific needs of the customer (including women, veterans,
and ethnic minorities).
3. Expand Contracting and Business Development for Underserved
Communities. Ensure that all programs supporting SBA’s socio-economic
and service-disabled veteran-owned small business contracting goals are
efficiently and effectively run. Conduct training and outreach to expand
contracting and business development opportunities for underserved
communities.
4. Support Regional Cluster Development. Use all traditional SBA programs,
including loans, entrepreneurial training, and technical assistance to support
the increased competiveness of geographic clusters of small businesses in
underserved communities. Support these clusters through dedicated
programs such as the Regional Innovation Clusters program.

Performance Indicators
• Capital Access. Number of Small Businesses Assisted for 7(a), 504, SBIC,
and Microloans; loan approval dollars in Underserved Markets for 7(a), 504,
and Microloans.
• Counseling and Training.
o Percentage of clients from underserved demographics or geographically-
based constituencies that are served by all resource providers
o Veterans: Number of Veterans assisted and customer satisfaction (%)

SBA Strategic Plan – Fiscal Years 2011 - 2016 12
• Contracting and Business Development.
o Maximize contracting dollars and increase share going to the socio-
economic and service-disabled veteran subgroups with small business
contracting goals (SDB (including 8(a)), WOSB, SDVOSB, HUBZone)
o Number of small businesses assisted through the 7(j) program and
outcome-based approach to management and technical assistance.

SBA Strategic Plan – Fiscal Years 2011 - 2016 13
Strategic Goal 2: Building an SBA that meets needs of today’s and tomorrow’s small
businesses

Strategic Objective 2.1: Strengthen SBA’s core programs and operations to ensure
that they are high performing, effective, and relevant to the needs of the small business
community.

Strategies
1. Improve the Customer Experience through Online Tools and Resources,
and Ongoing Simplification of SBA’s Processes
Continue to improve sba.gov to ensure a more user-centric, streamlined
experience for SBA’s customers. Provide a small business gateway that
enables small businesses to connect with needed resources and answers in a
way that continues to save them time. Implement the Administration’s Open
Government principles of transparency, collaboration and participation across
the agency. Release high-value data sets that are relevant to small
businesses. Invest in online and mobile resources to support our mobile and
remote workforce. Continue to identify ways to simplify SBA’s processes and
procedures and re-engineer them as appropriate.
2. Implement Customer Relationship Management Technologies to Yield
Usable Customer Information. Deploy tools to create and utilize a single
source of customer data to provide consistent service delivery across the
country.
3. Provide Robust Performance and Financial Management Information.
Provide financial and performance information that is useful, relevant, timely
and accurate and which assists the SBA in maximizing program performance
and accountability. Align budget with performance and link it to the agency’s
goals, regularly produce financial and performance reports, conduct program
reviews, and maintain a rigorous internal control process to support improved
performance of the agency’s operations and programs.
4. Assess and review small business size standards to ensure that SBA and
other Federal programs remain relevant to small businesses.

Performance Indicators
In addition to performance indicators outlined in Section I, SBA will also focus on:
• Customer Satisfaction Ratings of SBA’s Online Applications and
Resources.
• Robust Performance and Financial Management. Independent auditor’s
opinion on SBA’s financial statements. Transparent reporting on agency’s
high priority goals.
• Open Government. Meet proposed milestones in SBA’s Open Government
plan.
• Hours saved by users of sba.gov

SBA Strategic Plan – Fiscal Years 2011 - 2016 14
Strategic Objective 2.2: Invest in SBA’s employees so they can more effectively serve
small businesses.

Strategies
1. Recruit and Retain Exceptional Talent – Aggressively pursue and retain
individuals with the requisite skills and abilities to execute SBA’s mission.
Support an environment where employees are engaged. Provide
professional development to contribute to the overall success of SBA.
Integrate SBA’s payroll and budgeting information systems. Decrease SBA’s
average time-to-hire. Use hiring flexibilities to provide hiring officials with
available options for selecting highly qualified candidates.
2. Support and Invest in Employees
• Employee Training – Increase SBA’s capacity to perform and anticipate
organizational and constituent needs by providing employees with
business, technical and analytical training.
• Workforce/Performance Management – Conduct an analysis of mission-
critical jobs and gaps in SBA’s staffing of these positions. Develop and
implement a plan to close identified gaps. Prepare an SBA succession
plan to retain and transfer institutional expertise and knowledge. Link
employees’ annual performance plans to organizational goals and
ensure that they are results-oriented and adhere to OPM standards.
• Provide Enabling Technology – Deploy technologies to enable
employees to quickly and efficiently perform daily duties as well as when
mobilized for disaster service.
• Engaging Employees – From the employee viewpoint survey, identify
opportunities to improve employee engagement and utilization.

Performance Indicators
• Recruit and Retain Exceptional Talent. An SBA average “Time-to-Hire”
that is five days faster than the Federal Government-wide standard.
Retention rates for new hires. Survey hiring managers for quality of
candidates.
• Support and Invest in Employees. Annual employee/customer satisfaction
surveys.

Strategic Objective 2.3: Mitigate risk to taxpayers and improve oversight across SBA
programs.

Strategies
Leverage new technologies to proactively oversee and manage SBA’s credit
programs and credit risk management system. This more robust, real-time risk
management program will include additional, new processes for risk mitigation.
These program improvements will be implemented within the planning period.
1. Reduce Credit Risk. Improve lender risk/loan program risk management
system and practices by implementing a more robust rating system for lender
risk oversight, improving transparency into portfolio/program performance,

SBA Strategic Plan – Fiscal Years 2011 - 2016 15
implementing “best practices” for lender oversight, and enforcing rules and
holding lenders accountable.
2. Reduce Government Contracting Risk. Ensure that benefits of SBA’s
contracting and business development programs flow to the intended
recipients.
• Ensure efficient and effective certification and recertification processes.
• Maintain surveillance and monitoring of compliance.
• Enforce rules and hold non-compliant firms accountable.
3. Reduce Entrepreneurial Development Program Risk. Conduct financial
and programmatic assessments of SBDCs, WBCs and SCORE to ensure
programs are operating in compliance with the requirements and will use a
risk-based approach to manage the oversight activities and resolve findings
accordingly. We will augment oversight with an ongoing Baldrige-based
accreditation program to drive continuous improvement of SBDCs.
4. Reduce Investment Program Risk. Invest in technology to create tools to
collect financial data and monitor risk and performance, and increase the use
of private firms for valuation of select funds.
5. Reduce Disaster Program Risk. Improve the disaster loan program risk
management system and practices.

Performance Indicators
• Credit Risk.
o Onsite/Offsite monitoring and reviews of lenders.
o Conduct regular programmatic reviews of the 7(a), 504, and Microloan
programs.
• Contracting Risk.
o Timely and effective processing of HUBZone and 8(a) applications.
o Number of HUBZone site visits and percentage of 8(a) reviews completed.
• Entrepreneurial Development Risk. Conduct regular programmatic and
financial reviews of all resource partners and evaluate risk ratings for lead
SBDCs.
• Investment Program Risk. Wind down the Participating Securities program
while minimizing loss and maximizing the recovery of leverage for the
taxpayer.
• Disaster Program Risk. Conduct regular programmatic reviews.

SBA Strategic Plan – Fiscal Years 2011 - 2016 16
Strategic Goal 3: Serving as the voice for small business

Strategic Objective 3.1: Collaborate with other agencies to strengthen the delivery of
programs, resources and services.

Strategies
1. Focus on Select Collaborations. Build significant partnerships with other
agencies when there are strong opportunities to benefit small businesses,
support Administration priorities, or to further other SBA Strategic Objectives
and Goals.
2. Serve as Collaborative Partner on Initiatives that Support Small
Businesses. Lead the SBIR program, working with all eleven agencies to
identify and replicate best practices across agencies. Continue partnerships
with agencies when the initiatives can help streamline or facilitate small
business expansion and growth.
3. Continually Evaluate SBA’s Collaborations. Assess the benefits of
collaborations, weighing benefits to small businesses against additional
resources required to support efforts.

Performance Indicators
In addition to performance indicators provided under Strategic Goal #1, SBA will
use performance indicators contained in specific collaborative agreements.

Strategic Objective 3.2: Foster a small business-friendly environment by encouraging
Federal Agency awareness about the impact of unfair regulatory enforcement and
compliance efforts, reducing burdens on small business, and improving small business
research.

Strategies
1. Reduce Regulatory Burdens:
Assess and mitigate regulatory burdens on small business.
Provide Regulatory Flexibility Act compliance training to regulatory staff and
policymakers in federal regulatory agencies. Evaluate Federal agencies’
efforts to reduce regulatory burdens as required by the Regulatory Flexibility
Act. Advance the concept of regulatory flexibility at the state government
level.
2. Oversee Regulatory Enforcement:
Raise awareness of regulatory assistance available and allow small
businesses to register comments about unfair regulatory enforcement.
Evaluate Federal agencies and report to Congress on the promptness and
adequacy of agency responses to inquiries from small businesses received
by the National Ombudsman about Federal regulatory burdens or other
substantiated concerns. Support Regional Regulatory Fairness Board
members.
3. Strengthen Awareness. Deploy sba.gov enhancements that strengthen the
awareness of SBA’s Office of Advocacy and Office of Ombudsman as critical
resources for small businesses.

SBA Strategic Plan – Fiscal Years 2011 - 2016 17
Performance Indicators
• Regulatory cost savings achieved. The long-term goal from Fiscal Year
2011 through Fiscal Year 2014 is to achieve $22 billion in regulatory cost
savings. (Office of Advocacy)
• Number of research products published annually. (Office of Advocacy)
• Small Business Comments/Federal Agency Responses. Processing times
to send comments to Agencies and to send responses to small businesses.
(Office of Ombudsman)

Strategic Objective 3.3: Promote the availability, analysis, and dissemination of the
most current, accurate, and detailed statistics possible on small business.

Strategies
1. Advocate for improved data collection on small business activity.
Pursue new avenues for improved and expanded data products on small
business by working with other government agencies and external sources.
2. Carry out and publish data research and analysis. Through both internal
analysis and contract research, publish regular, useful, high-quality data and
indicators on small businesses and the role that they play in the economy.
3. Raise awareness of data and findings. Publicize the availability of data
and findings to federal agencies, Congress, small business organizations,
research organizations, the media, and other stakeholders.

Performance Indicators
• Availability of small business data research and indicators on sba.gov and/or
data.gov

SBA Strategic Plan – Fiscal Years 2011 - 2016 18
Appendices

Performance Planning
Performance planning at the SBA begins with the strategic plan that states the Agency’s
mission and the strategic goals that the Agency works toward accomplishing. The plan
provides the framework around which the Agency requests funding from the Congress. The
strategic plan is implemented via annual performance budgets submitted to the Congress that
include goals defining specific levels of performance (targets). At the close of each fiscal year
an annual performance report is published that compares the actual levels of performance
achieved against the targets and provides explanations and action plans for all variances.
Annual performance budgets and reports may be viewed at
http://www.sba.gov/aboutsba/budgetsplans/index.html.

High Priority Performance Goals
The SBA has identified four performance goals that reflect high priorities of SBA
leadership and the Administration, and are critical to success in the strategic focus
areas. These goals are supported by the FY 2011 budget request and reflect the
breadth and depth of SBA’s commitment both to taxpayers and to the small business
community. By actively pursuing these goals, the SBA will strengthen its national
contributions to entrepreneurship, innovation, and competitiveness.

Map to Strategic
Goal
Plan
Expand access to capital by increasing the number of Strategic Objective
active SBA lending partners for the 7(a) loan program to 1.1
3,000 by September 30, 2011, a 15 percent increase over
the FY 2008 and FY 2009 average.

Increase small business participation in federal Strategic Objective
government contracting to meet the statutory goals and 1.2
reduce participation by ineligible firms.

Process 85 percent of home disaster loan applications Strategic Objective
within 14 days and 85 percent of business disaster loan 1.4
applications within 18 days.

Improve the Small Business Innovation Research (SBIR) Strategic Objective
program. 1.5

SBA Strategic Plan – Fiscal Years 2011 - 2016 19
Performance Measures
This Strategic Plan associates performance measures with each Strategic Objective
and identifies a few long-term quantified performance goals. Those Performance
Measures and the Strategic Objective with which they are associated are noted below.

Strategic
Long-Term Quantified Performance Measure
Objective
Loan Dollars Approved. The long-term goal from Fiscal Year 2011 to 1.1
Fiscal Year 2014 is to assist small businesses through $74 billion in
approved loans.

Small Business Contracting Share 1.2
• Meet the statutory goal for 23 percent of federal prime
contracting dollars going to small businesses.
• Meet the federal prime contracting goals for small
disadvantaged businesses – 8(a) program participants (5
percent), women-owned small businesses (5 percent), service-
disabled veteran owned small businesses (3 percent), and
HUBZone firms (3 percent).

Small Businesses Created. The long-term goal from Fiscal Year 1.3
2011 through Fiscal Year 2014 is to help create 37,000 small
businesses.

Loan Processing 1.4
• 85% of home loans processed within standard
• 85% of business loans processed within standard

Long-Term Capital Deployed. Double the amount of long-term 1.5
capital deployed annually through the SBIC platform and new
programs.

Regulatory cost savings achieved. The long-term goal from Fiscal 3.2
Year 2011 through Fiscal Year 2014 is to achieve $22 billion in
regulatory cost savings.

Communication and Accountability
The Agency’s strategic and annual performance goals are communicated internally and
externally via the Internet, public statements, and internal management meetings. Personal
Business Commitments hold each senior executive accountable for achieving the results
outlined in the Agency’s plans. Progress is monitored on a weekly, monthly, quarterly and
annual basis throughout the year.

SBA Strategic Plan – Fiscal Years 2011 - 2016 20
External Factors
A variety of factors beyond the SBA’s control can affect the attainment of the objectives
identified in this Strategic Plan. The following matrix identifies those external factors.

Objectives
Factor
Impacted
The flow of men and women who wish to start or grow a small business. 1.1., 1.3.,
1.5.

The SBA relies on other Federal agencies to meet targets and to maintain 1.2., 1.6.
appropriate data quality standards for reporting contract awards to small businesses.

The level of risk that the SBA can afford within its budget limits the development of 1.5., 2.3.
new guaranty products and/or delivery methods.

Economic factors including inflation, sector changes, growth rates, unemployment 1.1., 1.2.,
trends and the availability of capital can impact portfolio performance as well as 1.6.
demand for the SBA’s programs.

Availability of local matching funds for resource partners (e.g., state and local 1.3.
governments, colleges and universities, private sector)

Local disasters 1.1., 1.2.,
1.4

Changes resulting from Congressional mandates and Presidential directives 1.1., 1.2.,
1.4., 1.6.,
2.3

Availability of lender networks, lending partners, and private equity in underserved 1.6.
markets

Reaching out to underserved markets where access to credit is constrained may 1.6.
result in the Agency increasing its credit risk.

Legislative changes that limit the SBA’s ability to impose accountability requirements 2.3.
on lender and finance partners.

Since the SBA has a fixed annual budget, significant variances in the number and 1.4.
scope of disasters can lead to additional funding requirements via supplemental
appropriations, which are not assured. SBA’s annual disaster loan budget assumes
an average disaster season.

There may be instances where the catastrophic disaster damage is so extensive that 1.4.
long-term financial recovery provided by the SBA is not the immediate concern of the
disaster victims. The primary concern may instead be emergency food and shelter.
The SBA may be prepared to make and distribute loans, but the disaster victims may
not be ready to make long-term recovery decisions. This can also impact the SBA’s
ability to meet its goals.

SBA Strategic Plan – Fiscal Years 2011 - 2016 21
Objectives
Factor
Impacted
The SBA relies on many partners across the spectrum of government to deliver timely 1.4.
financial assistance to disaster applicants. Those partners can face many
challenges, including providing access to records and services during disaster. This
lack of access can have a dramatic effect on the SBA’s ability to provide timely
assistance.

Security concerns, immigration issues, health care mandates and many other issues 1.2., 3.2.
drive regulators to promulgate laws and regulations that increase the cost of doing
business for the small business owner.

The cooperation received from other agencies to provide compliance links for 2.1, 3.1.
SBA.gov.

There are continued attempts to push the SBA to address issues beyond the 3.2.
authority of the Small Business Act and applicable laws and regulations. If enacted,
some of these changes would have the Agency essentially duplicate the activities of
other Federal organizations.

The Agency is to be a responsible steward within its programs. The SBA also has the 3.1., 3.2.
obligation to avoid the unnecessary duplication of programs and responsibilities with
other Agencies.

As Congress passes laws amending the Small Business Act or other laws to require 1.2., 3.1.,
the Agency to undertake broader responsibilities, the policy focus of the SBA is 3.2.
diluted to incorporate those issues.

Large-scale natural disasters can force the Agency to re-focus, shifting a percentage 1.1., 1.3.,
of the SBA’s personnel to the SBA Office of Disaster Assistance. This will have an 1.4., 1.5.,
effect on the other SBA programs. 2.1.

No legal authority exists to force change. Many of the major public policy issues are 1.2., 3.1.,
outside the ability of the SBA to take direct action. 3.2.

The objectives of other Federal entities occasionally conflict with those of the SBA. 1.2., 3.1.,
There are legitimate differences of opinion among agencies over contracting 3.2.
priorities, policy decisions and research development programs. Within the
interagency review process, all agencies are required – on occasion – to compromise
to benefit the Nation as a whole.

The cost of capital may rise which will impact the ability of entrepreneurs to obtain 1.1., 1.5.
financing.

SBA Strategic Plan – Fiscal Years 2011 - 2016 22
Program Evaluation(s)
The SBA uses a variety of methods and tools to evaluate its programs including independent
evaluations, and Office of Inspector General and General Accountability Office reports and
evaluations.
• Independent evaluations are conducted on behalf of the SBA for the purpose of
evaluating program effectiveness.
• The SBA’s Office of Inspector General, an independent oversight office within the SBA,
conducts audits, investigations, and reviews relating to the Agency’s programs and
support operations.
• The General Accountability Office, an independent organization established by the
Congress, conducts program evaluations and analysis and makes recommendations to
improve practices and operations of the programs that it reviews.

Evaluations scheduled during the period covered by this strategic plan include:
• Analysis of Section 7(a) Guaranteed Loan Program
• OIG and GAO Reports and Evaluations (Scope and timing to be determined by OIG and
GAO)
• Office of Entrepreneurial Development’s Impact Study (Independent Longitudinal
Evaluation)

Consultation and Outreach
In order to solicit, gather, analyze, apply and respond to input from interested parties regarding
the draft Strategic Plan, SBA performed outreach to SBA employees, twenty-one stakeholder
groups, Congress, and Office of Management and Budget. Administrator Mills prepared and
distributed a video message to solicit employee input. SBA supervisors were asked to present
the draft plan to employees. SBA posted the draft plan on sba.gov and published a notice in
the Federal Register to solicit input from the general public.

A log was created to capture all comments received, and was used to track action taken
regarding those comments. SBA did not receive any contrary opinions to what was presented
in the draft plan. However, several suggested revisions were offered. All relevant comments
were presented to and discussed with senior SBA leaders and the draft plan was amended
accordingly. This document reflects the decisions made with regard to those comments.

SBA Strategic Plan – Fiscal Years 2011 - 2016 23
Office of the Administrator Office of Advocacy
Organization Chart (Includes Administrator, Deputy Administrator,
Chief of Staff, Chief Operating Officer)
Office of the Inspector General

Office of Office of Investments Office of Office of Gov’t Office of Field Office of Disaster
Capital Access and Innovation Entrepreneurial Contracting & Business Operations Assistance
(Proposed) Development Development
• Office of Financial • Office of Regional
Assistance • Small Business • Office of Small Business • Office of Business Administrators Office of Disaster
• Office of Surety Bond Innovation Research Development Centers Development • District Offices Planning
Guarantees Program • Office of Women’s • Office of Gov’t
• Office of International • Small Business Business Ownership Contracting
Trade Investment Companies • Office of • HUBZone Program
• Office of Credit Risk • Microloans Entrepreneurship • Office of Small Business
Management Education Utilization

Office of Office of Performance Office of Chief Office of Congressional &
Management & Management & Chief Information Officer General Counsel Legislative Affairs
Administration Financial Officer
• Office of Chief
• Office of Human Capital • Office of Performance Technology Officer
Management Management Office of National Office of
• Office of Grants • Office of Internal Ombudsman & Equal Employment
Management Controls Regulatory Opportunity & Civil
• Executive Secretariat Enforcement Fairness Rights Compliance

Office of Office of
Communication & Policy & Strategic
Public Liaison Planning

Office of Native Office of Veterans
American Affairs Business Development

Office of Faith Based & Office of
Community Initiatives Hearings & Appeals

SBA Strategic Plan – Fiscal Years 2011 - 2016 24
Organization Map
The SBA’s headquarters building is located in Washington, D.C., while its business products and services are delivered with
the help of 10 regional offices, 68 district offices, their corresponding branch offices, and a vast network of resource partners in
all 50 states, the District of Columbia, Puerto Rico, American Samoa, the U.S. Virgin Islands, and Guam.

SBA Strategic Plan – Fiscal Years 2011 - 2016 25
U.S. Small Business Administration
Addendum to Strategic Plan
Fiscal Years 2011 - 2016

The purpose of this addendum is to add goal owners and update Priority Performance Goals in
accordance with GPRA and minor changes to the text. All of the adjustments to the Strategic
Plan are included in this addendum and in effect as of FY2011. The original issued Strategic
Plan and this addendum constitutes the agency’s complete Strategic Plan. For the
convenience of the reader, we have underlined and bolded the text changes and additions,
and struck through for deletions in the Strategic Plan.

Strategic Goal 1: Growing businesses and creating jobs

Strategic Objective 1.1: Expand access to capital through SBA’s extensive lending
network.
Lead office: Office of Capital Access
Partners: Small Business Development Centers, SCORE, Women’s Business
Centers, SBA Lending Partners, Office of Field Operations

Performance Indicators
 Paperless Processing. Increase the percentage use of paperless
processing on 7(a) and 504 programs

Strategic Objective 1.2: Ensure federal contracting goals are met or exceeded by
collaborating across the federal government to expand opportunities for small
businesses and strengthen the integrity of the federal contracting certification process
and data.
Lead Office: Government Contracting & Business Development
Partners: HUBZone, Acquisition Training Institutions, Chief Acquisition Officers
Council, Small Business Procurement Advisory Council, Office of Federal
Procurement Policy

Strategic Objective 1.4: Ensure that SBA’s disaster assistance resources for
businesses, non-profit organizations, homeowners, and renters can be deployed
quickly, effectively and efficiently in order to preserve jobs and help return small
businesses to operation.
Lead Office: Office of Disaster Assistance
Partners: FEMA, SBA District Offices
Page 1
Strategic Objective 1.5: Strengthen SBA’s relevance to high-growth entrepreneurs and
small businesses to more effectively drive innovation and job creation through both the
agency’s existing programs as well as new initiatives.
Lead Office: Office of Investments and Innovation
Partners: Small Business Innovation Research, Office of International Trade,
Regional Clusters, Small Business Technology Development Center, SBA District
Offices

Performance Indicators
 SBIR Operational and Commercialization Improvements.
o Commercialization Rate (%)
o Number of patents (#)
o Additional outside investment received ($)
Significantly strengthen the SBIR program as the government’s premier
innovation program, deploying improved data collection, reporting systems, and
performance metrics. Specific performance metrics will be added after we
complete building a performance management system that establishes the
current baseline of commercialization levels. The targets will focus on a
meaningful increase in the rate of commercialization above that baseline

Strategic Objective 1.6: Strengthen outreach to underserved communities and
underserved populations.
Lead Office: Government Contracting & Business Development
Partners: Office of Capital Access, Office of Entrepreneurial Development, Small
Business Investment Companies, Small Business Development Centers, Regional
Clusters, Service-Disabled Veteran Owned Small Business program, Women-
owned Small Business program, HUBZone

Performance Indicators
 Capital Access. Number of Small Businesses Assisted in Underserved Markets
for 7(a), 504, SBIC, and Microloans
 Investments and Innovation. Number of Small Business Assisted in
Underserved Markets for Small Business Investment Companies and Small
Business Innovation Research

Strategic Goal 2: Building an SBA that meets needs of today’s and tomorrow’s small
businesses

Strategic Objective 2.1: Strengthen SBA’s core programs and operations to ensure that
they are high performing, effective, and relevant to the needs of the small business
community.
Lead Office: Chief Operating Officer
Partners: Chief Information Officer, Office of Performance Management & Chief
Financial Officer, Office of Field Operations, Office of Communications & Public
Liaison

Page 2
Strategies
1. Provide Streamlined Navigation Tools, such as SBA Direct, Improve the
Customer Experience through Online Tools and Resources, and
Ongoing Simplification of Simplify SBA’s Processes to Improve
Customer Service
Continue to improve sba.gov to ensure a more user-centric, streamlined
experience for SBA’s customers. Provide a small business navigation tools
gateway that enables small businesses to easily and directly connect with
needed resources and answers in a way that continues to save them time.
Implement the Administration’s Open Government principles of transparency,
collaboration and participation across the agency. Release high-value data
sets that are relevant to small businesses. Invest in online and mobile
resources to support our mobile and remote workforce. Continue to identify
ways to simplify SBA’s processes and procedures and re-engineer them as
appropriate.

2. Implement Customer Relationship Management Technologies to Yield
Usable Customer Information. Deploy tools to create and utilize a single
source of customer data to provide consistent service delivery across the
country from SBA personnel.

5. Improve performance management throughout the Agency. field
operations Align individual and organizational performance plans, goals
and metrics with the Strategic Plan itself.

Performance Indicators
 Hours saved by users of sba.gov

Strategic Objective 2.2: Invest in SBA’s employees so they can more effectively serve
small businesses.
Lead Office: Office of Human Resources Solutions
Partners: Office of the Chief Information Officer

Strategic Objective 2.3: Mitigate risk to taxpayers and improve oversight across SBA
programs.
Lead Office: Office of Credit Risk Management
Partners: HUBZone, 8(a), Office of Entrepreneurial Development

Performance Indicators
 Conduct regular programmatic reviews of the 7(a), 504, and Microloan programs.

Strategic Goal 3: Serving as the voice for small business

SBA’s Office of Advocacy will publish their Strategic Plan separately and apart from the
SBA Strategic Plan. Therefore, the Office of Advocacy has been removed from SBA’s
Strategic Plan.

Page 3
Strategic Objective 3.1: Collaborate with other agencies to strengthen the delivery of
programs, resources and services.
Lead Office: Office of the Administrator
Partners include, but are not limited to: the Department of State; Department of
Commerce; U.S. Trade Representative; Department of Agriculture Foreign
Agriculture Service; Department of Defense; the Environmental Protection
Agency’s Green Supplier Network; and, the Department of Veterans Affairs

Strategies
3. Prioritize small business customer service throughout the federal
government. Explore a secure data-sharing platform with key sister
agencies that provides small businesses with heightened levels of
responsiveness and tailored solutions.
34. Continually Evaluate SBA’s Collaborations. Assess the benefits of
collaborations, weighing benefits to small businesses against additional
resources required to support efforts.

Strategies
1. Reduce Regulatory Burdens: Support federal agency plans and efforts
to reduce regulatory burdens for entrepreneurs and small business
owners. Leverage ongoing roundtables with startups, businesses, and
investors to identify additional ways to improve what government does
and the way government works to empower job creators and innovation.
Assess and mitigate regulatory burdens on small business.
Provide Regulatory Flexibility Act compliance training to regulatory staff and
policymakers in federal regulatory agencies. Evaluate Federal agencies’
efforts to reduce regulatory burdens as required by the Regulatory Flexibility
Act. Advance the concept of regulatory flexibility at the state government
level.
3. Strengthen Awareness. Deploy sba.gov enhancements that strengthen the
awareness of SBA’s Office of Advocacy and Office of Ombudsman as critical
resources for small businesses.

Performance Indicators
 Regulatory cost savings achieved. The long-term goal from Fiscal Year
2011 through Fiscal Year 2014 is to achieve $22 billion in regulatory cost
savings. (Office of Advocacy)
 Number of research products published annually. (Office of Advocacy)

Page 4
Strategic Objective 3.3: Promote the availability, analysis, and dissemination of the most
current, accurate, and detailed statistics possible on small business.
Lead Office: Office of Administrator

Page 5
Appendices

Performance Planning
Annual performance budgets and reports located at:
http://www.sba.gov/aboutsba/budgetsplans/index.html. http://www.sba.gov/performance.

Priority Goals (replaces High Priority Performance Goals)

Below are the Priority Goals for FY 2012 and FY 2013.

Map to Strategic
Priority Goal
Plan
Capital: Process business loans as efficiently as Strategic Objective
possible. By September 30, 2013, increase the use of 1.1
paperless processing in the 7(a) program from 72% to
90% and in the 504 program from 55% to 75% to
improve the efficiency, effectiveness, and level of
service in its business loan programs.
Goal Owner: Office of Capital Access

Contracting: Increase small business participation in Strategic Objective
government contracting. By September 30, 2013, 1.2
SBA will increase small business participation in
federal government contracting to meet the
government wide goal that 23 percent of all prime
contracting dollars go to small businesses, and
continue to ensure that the benefits of SBA’s small
business contracting programs flow to the intended
recipients.
Goal Owner: Office of Government Contract and
Business Development

Disaster: Process Disaster Assistance applications Strategic Objective
efficiently. By September 30, 2013, increase the use 1.4
of the Disaster Assistance electronic loan application
(ELA) by 50%.
Goal Owner: Office of Disaster Assistance

Innovation & Investments: Expand access to long-term Strategic Objective
capital. From FY 2012 through September 30, 2013, 1.5
commit at least $4.3 billion of capital via the Small
Business Investment Company program in order to
facilitate access to capital for high growth companies
and enhance job creation and retention by these
companies.
Goal Owner: Office of Investment and Innovation

Page 6
Performance Measures Goals
This Strategic Plan associates performance measures with each Strategic Objective
and identifies a few long-term quantified performance goals. Those Performance
Measures Goals and the Strategic Objective with which they are associated are noted
below.

Revised Performance Measure table below:

Strategic
Performance Goal
Objective
Capital: 1.1
Jobs Supported (#) for 7(a), 504, ML & SBG
Goal Owner: Office of Financial Assistance
Counseling & Training: 1.3
Average annual hours of client assistance (%)
Goal Owner: Office of Entrepreneurial Development
Disaster: 1.4
Customer Satisfaction Rate for Approvals (%)
Goal Owner: Office of Disaster Assistance
Innovation & Investment: 1.5
Commercialization rate for SBIR awardees (%)
Goal Owner: Office of Investment and Innovation

Federal Priority Goals

Per the GPRA Modernization Act, P.L. 111-352, requirement to address Federal
Goals in the agency Strategic Plan and Annual Performance Plan, please refer to
Performance.gov for information on Federal Priority Goals and the agency’s
contributions to those goals, where applicable.

Page 7
Organization Chart Office of Advocacy
Office of the Administrator
(Administrator, Deputy Administrator, Chief of Staff)
Office of the Inspector General

Office of Office of Office of Investment Office of Gov’t Office of Field Office of Disaster
Capital Access Entrepreneurial and Innovation Contracting & Operations Assistance
Development Business Development
 Office of Financial  Office of Investment  Office of Regional
Assistance  Office of Small  Office of Innovation  Office of Business Administrators Office of Disaster
 Office of Surety Bond Business Development Development  District Offices Planning
Guarantees Centers  Office of Gov’t
 Office of Risk & Credit  Office of Women’s Contracting
Risk Management Business Ownership  HUBZone Program Office of International
 Microloans  Office of Trade
 Office of Financial Entrepreneurship
Program Operations Education

Office of Office of Performance Office of Chief Office of Office of Native
Management & Management & Chief Information Officer General Counsel American Affairs
Administration Financial Officer
 Office of Chief
 Office of Human  Office of Performance Technology Officer
Congressional & Office of Veterans
Resources Solutions Management
 Office of Grants  Office of Internal Legislative Affairs Business Development
Management Controls
 Office of
Office of Center for Faith‐Based
Administrative Services
 Office of Executive Hearings & Appeals & Neighborhood
Secretariat Partnerships

Office of Office of National
Equal Employment Ombudsman &
Opportunity & Civil Regulatory
Rights Compliance Enforcement Fairness

Office of
Communication &
Public Liaison

Page 8
SI 3 – Detail of OIG Audit follow-up Activity

Table I
Final Action on Audit Recommendations with Disallowed or Questioned Costs
October 1, 2011 – September 30, 2012

Number of Disallowed Costs
Recommendations (Rounded to
Thousands)
A. Recommendations with management decisions on
which final action had not been taken at the beginning 12 $11,231
of the period.
B. Recommendations on which management decisions
7 5,879
were made during the period.
C. Total recommendations pending final action during
19 $17,110
period.
D. Recommendations on which final action was taken
during the period.
1. Recoveries:
(a) Collections and Offsets 10 $4,718
(b) Property
(c) Other 4 5,251
2. Write-Offs 1 3,631
3. Total 15 $13,600
E. Recommendations needing final action at the end of
the period. 4 $3,510

Detail of Final Action Activity

Disallowed / Questioned Costs

Report # 9-16, SBA's FY 2008 Improper Payment Rate For The 7(a) Guaranty Loan Program
Summary: The audit objective was to determine (1) whether SBA’s FY2008 estimate of the improper
payment rate for the 7(a) program was accurate; (2) if the estimate was not accurate, the reasons
why, and (3) if recovery goals for FY2007 and FY2008 were met. The audit recommended the Office
of Capital Access seek recovery of $2.3 million from lenders on the loans listed in the audit report.
Loans were reviewed by the OGC to determine whether recovery was warranted. The recovery was
determined to be $24,208.
Final Action: $24,208 collected / $2,275,792 written off

Report # 9-18, SBA's Management of the Backlog of Post-Purchase Reviews at The National
Guaranty Purchase Center
Summary: The audit objective was to determine if post-purchase charged-off reviews were effective
in identifying lender noncompliance and if SBA’s decision to charge off older loans without performing
post-purchase reviews was appropriate. The audit recommended that the program office seek
recovery of $1,250,088 paid on 6 loan guarantees. Collection was made on four of the six loans; the
statute of limitations expired for one loan and SBA was bound by a settlement agreement on the
remaining loan.
3
Agency Financial Report ▪ FY 2012
Final Action: $941,201.65 collected / $308,886.35 written off

Report # 10-12, Assessment of The Community Express Pilot Loan Program
Summary: The audit objective was to determine whether the program is properly structured to ensure
success and to minimize the risk of fraud, waste and abuse. The audit recommended the Agency recover
$18,960 in guaranties on four loans purchased above the 50 percent guaranty level for which technical
assistance was not completed. Amounts were received on three loans; the lender responded with
additional information on the fourth loan and it was determined no additional recovery would be realized.
Final Action: $17,618.88 collected / $1,341.12 written off

Report # ROM 11-05, Assessment of 7(a) Recovery Act Loans
Summary: The objective of the audit was to determine whether purchased 7(a) Recovery Act Loans
were originated, closed, and purchased in accordance with the SBA’s rules and regulations, and
commercially prudent lending standards. The audit recommended the Agency recover funds on four
purchased loans. The amounts for two loans were collected; one was found not to warrant recovery; and
the fourth is being disputed by the lender.
Final Action: $2,802,326.90 collected / $0.00 written off

Report # ROM 11-06, Assessment of 7(a) Recovery Act Loans
Summary: The objective of the audit was to determine whether purchased 7(a) Recovery Act Loans
were originated, closed, and purchased in accordance with the SBA’s rules and regulations, and
commercially prudent lending standards. It is the second in a series of on-going audits. The audit
recommended the Agency recover funds on five purchased loans. The amounts for three loans were
collected; one was found not to warrant recovery; and the fourth was recovered in 2011.
Final Action: $806,552 collected / $0.00 written off

Report # 11-07, Processing of Insurance Recovery Checks at the Disaster Loan Servicing Centers
Summary: The audit objective was to determine whether the servicing centers have adequate and
effective systems for processing insurance checks and recovering duplicate benefits. The audit
recommended the Agency recover $1,155,324 of duplication of benefits that were improperly returned to
the borrowers. Collections have been made on $110,405.87 with the balance requiring additional
collection efforts and/or subsequent write-off.
Final Action: $110,405.87 collected / $1,044,918.13 written off

Report # ROM 11-07, Assessment of 7(a) Recovery Act Loans Approvals
Summary: The objective of the audit was to determine whether if 7)a) Recovery Act loans approved for
more than $150,00 were originated and closed in accordance with policies and procedures and to identify
any evidence of suspicious activity. The audit recommended that 11 loans be flagged to ensure the
identified deficiencies noted in the audit are properly addressed if the loans default and are submitted for
purchase. All loans were flagged in the loan system.
Final Action: $0.00 collected / $0.00 written off/$3,205,650 Flagged loans

Report # 12-11R, Assessment of High Dollar Early-Defaulted Loans
Summary: The objective of the audit was to determine whether purchased 7(a) Recovery Act Loans
were originated, closed, and purchased in accordance with the SBA’s rules and regulations, and
commercially prudent lending standards. The audit recommended recovery of one loan when it was
determined that deficiencies were not noted at the time of purchase.
Final Action: $15,188 collected / $0.00 written off

4
Agency Financial Report ▪ FY 2012
Report # 12-12, Assessment of State Trade and Export Promotion (STEP) Program Grants
Summary: The audit discovered an award in the amount of $1,022,781 was made to an ineligible
recipient and this Advisory Memorandum was issued in order for immediate action to be taken. Funds
had not been disbursed. Obligated funds were cancelled, thereby prohibiting future disbursements. All
three recommendations for this audit include questioned costs of $1,022,781, for the same award; thus
the amount de-obligated was $1,022,781 but is counted twice in the table totals as two recommendations
were resolved.
Final Action: $0.00 collected / $0.00 written off/$1,022,781 De-obligated

Table II
Final Action on Audit Recommendations with Funds Put To Better Use
October 1, 2011 – September 30, 2012
Funds to be Put to
Number of
Better Use
Recommendations
(Rounded to
Thousands)
A. Recommendations with management decisions on
which final action had not been taken at the beginning 4 $54,242
of the period.
B. Recommendations on which management decisions
were made during the period. 2 7,700
C. Total recommendations pending final action during
period. 6 $61,942
D. Recommendations on which final action was taken
during the period.
1. Value of recommendations implemented
(completed).
2. Value of recommendations that management
concluded should not or could not be implemented
or completed.
3. Total 0 $0
E. Recommendations needing final action at the end of
the period. 6 $61,942

Table III
Final Action on Audit Recommendations Not Completed Within 1 Year
October 1, 2011 – September 30, 2012

Report # 0-14, 7(a) Service Fee Collections
Program: OCFO
Date Issued: 03/30/2000
Management Decision Date: 08/22/2000
Explanation: The recommendation is to establish receivable accounts for 7(a) loan service fees.
This is part of the SF 1502 project and the team is working to determine if the establishment of a
receivable account for 7(a) loan fees is to be part of the fee collection enhancement initiative.
Anticipated completion date is June 2013.

5
Agency Financial Report ▪ FY 2012
Report # 3-08, SBA's Oversight of the Fiscal Transfer Agent For The 7(a) Loan Program
Program: CA
Date Issued: 01/30/2003
Management Decision Date: 10/15/2003
Explanation: The recommendation is to the Office of Capital Access to develop SBA procedures and
regulations governing the proper operation of the Master Reserve Fund. An SOP has been delayed
several times while in internal clearance. The office is working to publish the SOP in 2013.

Report # 3-26, Microloan Program: Moving Toward Performance Management
Program: Microloan
Date Issued: 05/13/2003
Management Decision Date: 08/28/2003
Explanation: The recommendation is to the Office of Financial Assistance to ensure program goals
are set and require outcome-oriented data. An SOP was submitted for clearance in FY-2010 and
numerous edits delayed clearance until 2012. The release has been delayed due to proposed rules
that will conform to industry practices as OMB has asked for a delay in issuance of non-critical new
rule making as its resources to review new rules are overextended. Release is expected in 2013.

Report # 4-34, SBA's Process for Complying With the FMFIA Reporting Requirements
Program: OCFO
Date Issued: 07/29/2004
Management Decision Date: 09/09/2004
Explanation: The two recommendations remaining open are to the Office of the Chief Financial
Officer (OCFO) to revise, clear and issue the draft SOP 00 02 3 and clearly define material weakness
as it relates to SBA and at the different levels of management within the Agency. The current SOP is
being rewritten. The OCFO will work with the OIG and OGC during the SOP update process and to
obtain clearance. These final actions are expected to be completed by 06/30/2013.

Report # 6-10, SBA's FY 2005 Financial Statements Management Letter
Program: OCFO
Date Issued: 01/18/2006
Management Decision Date: 03/06/2006
Explanation: There is one open recommendation to the Office of the Chief Financial Officer to update
the accounting SOP to include SBA’s policies and procedures to reflect the GL accounts and data field
updated for each transaction. The accounting pro forma on LAS transactions is available in “table
format” in the CGL, but data field updates are not shown. SBA will work with OCIO to develop this
documentation through an automated process. This audit recommendation is expected to have a final
action by 09/30/2013.

Report # 6-25, SBA's Implementation of the Improper Payments Information Act (IPIA)
Program: OCFO
Date Issued: 06/21/2006
Management Decision Date: 07/19/2006
Explanation: The recommendation is to the Office of the Chief Financial Officer (OCFO) to develop
Procedure Notices or SOPs as internal guidance when changes to IPIA requirements are issued by
OMB. Improper Payments is a section in the Internal Control SOP. The OCFO will update this with
new Improper Payments Elimination and Recovery Act (IPERA) guidance. This final action is
expected to be completed by 06/30/2013.

6
Agency Financial Report ▪ FY 2012
Report # 6-34, Policies and Procedures for the SBAExpress and Community Express Loan
Programs
Program: OCA
Date Issued: 09/29/2006
Management Decision Date: 09/30/2009
Explanation: There are two open recommendations to the Office of Capital Access (OCA).
1) Promulgate regulations to govern the SBAExpress Program to ensure the Agency has sufficient
legal authority. Program guidance that had previously been part of a program guide is now codified in
the appropriate places throughout an updated SOP. This SOP is a primary resource that Agency
lending partners rely on to operationalize SBA loan programs. Promulgating a rule change is delayed
due to OMB guidance to delay all non-essential/non-critical rule changes at this time. A draft rule
exists but has not been submitted for clearance. This recommendation is expected to have final action
by 06/30/2013. 2) Promulgate regulations to exempt the SBAExpress Program from existing
regulations that conflict with the SBAExpress Program Guide. Inconsistencies were addressed in the
SOP update. Promulgating a rule change is delayed due to OMB guidance to delay all non-
essential/non-critical rule changes at this time. A draft rule exists but has not been submitted for
clearance. This recommendation is expected to have final action by 06/30/2013.

Report # 7-03, SBA's FY-2006 Financial Statements
Program: M&A
Date Issued: 11/15/2006
Management Decision Date: 01/04/2007
Explanation: The recommendation is to the Chief Operating Officer, in conjunction with appropriate
program officials, to ensure that policies are implemented regarding segregation of duties for FRIS,
JAAMS, DCMS and LAS. SOP 90 46 2B is undergoing revisions to incorporate configuration
management controls. SOP 90 47 3 is expected to be implemented by 12/31/12.

Report # 8-12, Oversight of SBA Supervised Lenders
Program: CA
Date Issued: 05/09/2008
Management Decision Date: 06/26/2008
Explanation: One recommendation remains open to the Office of Capital Access (OCA) to establish
risk mitigation goals applicable to each loan program and the entire lending portfolio. Based on
available data, OCRM proposed performance metrics to be used to evaluate program performance at
the portfolio, loan and sub-program levels. By 12/31/12, OCRM intends to conduct a baseline
analysis, establish acceptable risk levels, risk management action plans, and develop a quarterly
reporting system. This final action is expected to be completed by 12/31/2011.

Report # 8-13, Planning For the Loan Management and Accounting System Modernization and
Development Effort
Program: CA
Date Issued: 05/14/2008
Management Decision Date: 08/11/2008
Explanation: There is one remaining open recommendation to the Office of Financial Assistance to
make cost-effective remediation of mainframe vulnerabilities a priority and ensure that migration of
LAS occurs before the current mainframe contract expires in 2012. The LMAS investment was
revised in response to OMB memorandum M 10 26. SBA provided a copy of the schedule to come off
the mainframe. Progress was noted in the migration from the mainframe but the recommendation will
not be closed until the migration is complete and the Micro-focus COBOL is in full production on a
separate operating platform.

7
Agency Financial Report ▪ FY 2012
Report # 9-03, SBA's FY 2008 Financial Statements
Program: COO
Date Issued: 11/14/2008
Management Decision Date: 10/01/2009
Explanation: This recommendation is to the Chief Operating Officer, in conjunction with program
offices, to document and implement segregation of duty policies and procedures for the Loan
Accounting System. SOP 90 47 2 is undergoing revisions to incorporate configuration management
controls. SOP 90 47 3 is expected to be implemented by 12/31/12. This recommendation will have a
final action by 12/31/2012.

Report # 9-05, SBA’s FY 2008 Financial Statements - Management Letter
Program: OFA
Date Issued: 12/17/2008
Management Decision Date: 02/18/2009
Explanation: The two open recommendations are to the Office of Financial Assistance to reinforce
the importance of the collateral analysis in an updated SOP and ensure the revised Disaster Loan
SOP identifies procedures related to the disposition of collateral. These issues will be addressed with
the update of SOP 50 52. The SOP is in its final form in preparation for clearance. The SOP
underwent an extensive and careful review process to ensure that compliance with DCIA and other
statues were being consistently applied across all servicing/liquidation SOPs. These recommendations
are expected to have final actions by 12/31/2012.

Report # 9-15, Participants in the 8(a) Program by Firms Owned By Alaska Native Corporations
(ANCs)
Program: GC/BD
Date Issued: 07/10/2009
Management Decision Date: 08/04/2009
Explanation: The recommendation is to Government Contracting & Business Development to
determine whether 8(a) firms owned by ANCs and tribes should continue to be exempt from the cap
on total sole source awards. The program office will evaluate the extent to which ANCs are bringing
work into the 8(a) program that might not otherwise be available to program participants. The program
office is developing a methodology in order to conduct this review. This recommendation is expected
to be final by 09/30/2013.

Report # 10-01, Monitoring Of Insurance Coverage for Disaster Loan Recipients
Program: OFPO
Date Issued: 10/20/2009
Management Decision Date: 11/06/2009
Explanation: The recommendation is to the Office of Financial Program Operations. Determine the
cost implications of achieving compliance with flood insurance statutes on existing and future loans.
The program office included the standards for implementation in SOP 50 52 which will enter clearance
in the first quarter of FY2013. In addition, the office has developed a working group to analyze the
best method to implement the forced placement of insurance. The expected implementation of forced
placement of insurance is 3/31/13.

Report # 10-10, Audit of Premier Certified Lenders in the Section 504 Loan Program
Program: OCA
Date Issued: 03/23/2010
Management Decision Date: 05/20/2010
Explanation: The recommendation is to the Office of Capitol Access to require that lenders use the
actual cash flow method to determine borrower repayment ability, historical salary levels to estimate
officer salary, and historical sales data to make sales projections. OCA is in the process of identifying
industry best practices and consulting with similar government agencies regarding methods and
guidelines for repayment analysis. OCA will incorporate best practices into agency guidance by
4/10/13.
8
Agency Financial Report ▪ FY 2012
Report # 10-14, Audit of Quality Assurance Oversight of the Loan Management and Accounting
System Project
Program: ODM
Date Issued: 09/13/2010
Management Decision Date: 06/13/2011
Explanation: The three recommendations is to the Office of the Administrator to require the LMAS
Quality Assurance plan to incorporate all the components required by the enterprise-wide QA plan; to
take steps to hold contractors accountable for performing the activities specified in its contract; and to
revise the contractor performance work statement to include IV&V responsibilities. The ITQA SOP
was updated and SBA has demonstrated significant progress in implementing a quality assurance
process by conducting QA reviews. The contract has been assigned to a QA manager to ensure
independence and the updated SOP outlines the QA function. SBA is acquiring a vendor to perform
IV&V. The expected final action is expected by September 2013.

Report # ROM 10-14, Memorandum on the Accuracy of Recovery Act Contract Award Obligations
Reported To the Federal Procurement Database System - Next Generation and
Recovery.gov
Program: OBO
Date Issued: 04/15/2010
Management Decision Date: 05/14/2010
Explanation: The three recommendation are to the Office of Business Operations to 1) reconcile
Recovery Act contract awards reported to FPDS-NG and Recovery.gov all non-competitive contract
awards previously not reported; 2) review FPDS-NG and designate the appropriate contract type for
the five Recovery Act contracts identified and report to Recovery.gov any Recovery Act contracts that
were not awarded on a firm-fixed basis; and 3) correct the competition characteristic recorded in
FPDS-NG for an identified contract to show that it was a "competitive delivery order." The Data
Quality Plan was updated and a contract was awarded for additional support for data quality
corrections. These resources will concentrate on data cleanup, data quality certification and correcting
remaining data anomalies. The Agency completed a reconciliation between FPDS, PRISM and
Oracle, and is automating this quality assurance process. SBA is not able to correct data in FPDS-NG
of reported contracts in prior years and OBO is working with the auditors to resolve the issues. These
recommendations are expected to have final actions by 01/31/2013.

Report # ROM 10-16, Audit of SBA’s Planning and Award of Customer Relationship Management
Contracts.
Program: OBO
Date Issued: 06/29/2010
Management Decision Date: 05/15/2011
Explanation: The two recommendations are to the Office of Business Operations are to exclude a
contract award from SBA calculations used to determine the number of 8(a) program contracts and
business contracts for FY2009; and to establish measureable outcomes for the CRM initiative and
identify the likelihood that a contractor could meet measurable outcomes in contract evaluation criteria.
SBA is not able to correct data in FPDS-NG of reported contracts in prior years and OBO is working
with the auditors to resolve the first issue. The development and implementation of measurable
outcomes in contract evaluation criteria has been completed and is going through internal clearance.
These recommendations are expected to have final actions by 01/31/2013.

9
Agency Financial Report ▪ FY 2012
Report # ROM 10-19, Audit of Early Defaulted and Early Problem Recovery Act Loans.
Program: CA
Date Issued: 09/24/2010
Management Decision Date: 06/29/2011
Explanation: The two recommendations are to the Office of Capital Access to require the lenders
have 25 purchased loans to bring the loans into compliance or recover the $375,259 in paid
guaranties; and to flag the other loans that have not yet been purchased to ensure the loan
deficiencies are properly addressed if the loans are purchased. Of the 25 loans in the first
recommendation, five loans are currently undergoing the evaluation process for denial or repair as
recommended. Expected completed through process and potential recovery is by 1/31/13. The three
loans in the second recommendation are currently being evaluated for denial or repair and expected
recovery is by 3/31/13.

Report #11-03, Audit of SBA’s FY 2010 Financial Statements.
Program: CIO
Date Issued: 11/12/2010
Management Decision Date: 06/01/2011
Explanation: The four recommendations are to the Office of the Chief Information Officer to (1)
improve the tracking and monitoring process to address risk vulnerabilities for key financial systems;
(2) prevent users from anonymously connecting unauthorized devices by mandating domain
authentication for IP address issuance; (3) develop a comprehensive security education and training
program for IT security personnel; and (4) enforce an organization-wide configuration management
process. For the first recommendation, Agency-wide vulnerability tracking and monitoring policies and
procedures have been approved by the auditors and monitoring tools have been purchased and are
being deployed. Vulnerability reports are generated from the tools and are reviewed weekly. A project
is underway to establish a process to remediate vulnerabilities according to policy and procedures.
This final action is estimated to be completed by 01/31/2013. Anonymous connections and mandatory
domain authentication are enforced by CounterAct, and will prevent unauthorized devices on the
network once the 802.1x standard is applied to all switches. A project is underway to implement the
802.1x solution, which includes requirements to document policies and procedures. Final action
estimated to be completed by 12/31/12. Training requirements are documented in the revised IT
Security Program SOP which is in the clearance process. A vendor has been selected to provide
annual computer security awareness and privacy training to all SBA employees. A second vendor is
being identified to provide focused training to staff with significant IT security responsibilities. The final
action is estimated to be complete by 3/28/13. Configuration Management policy is being developed
to incorporate enterprise change control. A centrally managed Agency-wide configuration
management solution is being identified for procurement. Final action is estimated to be complete by
9/30/13.

10
Agency Financial Report ▪ FY 2012
Report #ROM 11-04, Audit of SBA’s Recovery Act Data on Public Websites.
Program: CFO
Date Issued: 3/22/11
Management Decision Date: 06/30/2012
Explanation: The six recommendations are to the Office of the Chief Financial Officer to determine if
awards were made or funds should be de-obligated on 66 purchase requisitions; to perform routine
reconciliation of executed awards to FPDS-NG.gov; to deploy an independent statistical verification
and validation of all SBA transactions; to determine if Recovery Act funds were used to fund 13
contracts; to develop a data quality plan; and to monitor contractor reported information and prime
contractor information for accuracy. The OCFO is researching data to resolve the contract funding
issues and is developing procedures to ensure data accuracy in the future, including revising the
existing data quality plan. Final actions for all recommendations are estimated to be 9/30/13.

Report #11-05, Audit of SBA’s FY 2010 Financial Statements – Management Letter
Program: CA
Date Issued: 12/15/2010
Management Decision Date: 02/09/2011
Explanation: The recommendation is to the Office of Capital Access to perform an analysis of loans
charged off in prior years to identify and correct any DCA non-compliance issues noted. During
FY2012, the DCIA Compliance Team was focused on correcting system coding and testing to ensure
future referrals would be compliant. DCIA Compliance Team has begun conducting analysis of loans
charged off in prior years and will develop a plan to correct any non-compliance issues. Final action is
estimated to be complete by 3/15/13.

Report #ROM 11-05, Audit of 7(a) Recovery Act Loans
Program: CA
Date Issued: 06/29/2011
Management Decision Date: 07/19/2011
Explanation: The recommendation is to the Office of Capital Access to seek recovery of $373,532
from a lender for the guaranty paid by SBA. The lender disagreed with the recommendation and the
loan was evaluated by the Office of General Counsel and the Office of Capital Access. Recovery
efforts have been initiated. The final action date is estimated to be 1/31/13.

11
Agency Financial Report ▪ FY 2012
Report # 11-06, Audit of FY2010 Federal Information Security Management Act Review
Program: CIO
Date Issued: 01/28/2011
Management Decision Date: 03/28/2011
Explanation: The eight recommendations are to the Office of the Chief Information officer to (1)
require an updated list of Major Systems and their interfaces; (2) manage, control, and monitor system
interconnections throughout their lifecycle; (3) develop configuration management policies and
procedures; (4) develop and maintain a centralized inventory of all Agency hardware and software; (5)
develop and document baseline configuration for each information system; (6) modify the POA&M
reporting tool to comply with OMB Memorandum 04-25; (7) develop and test disaster recovery plans;
and (8) enforce contractor background investigations. Status for these recommendations include (1) A
total count of all interconnections was completed and Interconnection Service Agreements (ISAs) for
FISMA-reportable systems are being obtained. Estimated completion of the final action is 3/28/13. (2)
SOP 90 47 3, published 10/10/12, requires system owners to manage system interconnections in
accordance with NIST requirements. SBA personnel have one year to implement the requirements of
the SOP. The final action completion date is estimated to be 10/10/13. (3) Configuration Management
policy is being developed to incorporate enterprise change control. The final action completion date is
estimated to be 9/30/13. (4) An enterprise-wide asset management tool will be procured to centrally
manage assets. The final action completion date is estimated to be 2/7/14. (5) A project is underway
to establish baselines for all systems agency hardware and software. Final action completion is
estimated to be 1/31/13. (6) MB Memo 04-25 compliant tool CSAM has replaced the previous POA&M
tool and is used to centrally manage POA&Ms. Once cost guidance is established CSAM training will
be provided to the user community. The final action completion date is estimated to be 12/30/12. (7)
Disaster recovery tests were performed for at-risk externally hosted systems. Table top test were
performed for internally-hosted systems; a solution to the inability to conduct tests internally is being
researched. The final action completion date is estimated to be 9/30/13. (8) SOP 90 47 3 contains
procedures for managing contractor background investigation and reviews are being conducted. The
final action date is estimated to be 11/15/12.

Report #11-07, Audit of Insurance Recovery Checks at the Disaster Loan Servicing Centers
Program: OFPO
Date Issued: 02/10/2011
Management Decision Date: 04/07/2011
Explanation: The recommendation is to the Office of Capital Access to revise the SOP to provide
detailed instructions for processing insurance recovery checks. SOP 50 52 is being prepared for
clearance and the final action completion date is 12/31/12.

Report #11-08, Audit of Procurement of Information Technology and Software Through Isika
Technologies, Inc.
Program: CFO
Date Issued: 02/25/2011
Management Decision Date: 03/30/2011
Explanation: The two recommendations are to the Office of the Chief Financial Officer to exclude
contracts used to determine 8(a) program contracts in FY 2009 and 2010 and to conduct a review of
data submitted to FPDS-NG for the vendor. The Agency completed a reconciliation between FPDS,
PRISM and Oracle, and is automating this quality assurance process. SBA is not able to correct data
in FPDS-NG of reported contracts in prior years and OCFO is working with the auditors to resolve the
issues. These recommendations are expected to have final actions by 01/31/2013.

12
Agency Financial Report ▪ FY 2012
Report #11-10, Management Advisory Report on the Records Management and Documentation
Process at the Disaster Loan Servicing Centers.
Program: FPO
Date Issued: 03/29/2011
Management Decision Date: 06/20/2011
Explanation: The two recommendations are to the Office of Financial Programs to develop record
designation requirements for all loan servicing documents and incorporate the guidance into SOP 50
52 and to revise the SOP to preserve the analyses performed to conduct all servicing actions. The
SOP 50 52 is being put into clearance. The final action date is estimated to be 12/31/12.

Report #11-11, Audit of SBA’s Surveillance Review
Program: GC/BD
Date Issued: 03/31/2011
Management Decision Date: 07/08/2011
Explanation: The 12 recommendations are to the Office of Government Contracting and Business
Development require development or update to policies and procedures to include selection criteria,
an effective monitoring process, resource requests, instruction on completing checklist questions,
monitoring the performance of work requirements and issuance surveillance review reports. Revisions
to Chapter 4, How Do I Perform a Surveillance Review? Include 8(a) specific requirements,
modification of rating categories, establishment of formal follow-up processes and update of interview
questions. The SOP 60 02 7 is being updated and will be submitted for clearance. The final action
date is estimated to be 9/30/13.

Report #11-14, Audit of Funding of Information Technology contracts Awarded to Isika
Technologies, Inc.
Program: CFO
Date Issued: 06/02/2011
Management Decision Date: 12/11/2011
Explanation: The four recommendations are to the Office of the Chief Financial Officer and require a
review of funding to ensure SBA did not violate the Anti-Deficiency Act during a Continuing Resolution
in 2011; a review of IDIQ contracts and task orders to ensure they are issued in compliance with FAR;
and a revision of FY2009 and FY2010 FPDS-NG data. The OCFO is researching the funding issue to
ensure funds were not inappropriately obligated and will review IDIQ contracts and written policies and
procedures to ensure work is performed in compliance with the FAR. SBA is unable to update prior
year information in FPDS-NG and is working with the auditors to resolve the issue. Final action
completion date is estimated to be 6/30/13.

Report #11-16, Audit of Banco Popular’s Assessment of Borrower’s Repayment Ability.
Program: CA
Date Issued: 07/13/2011
Management Decision Date: 09/30/2011
Explanation: The two recommendations are to the Office of Capital Access to recover loan
guaranties, less any recoveries, paid on ten defaulted loans; and to improve data pertaining to new
franchise loans. The office is working on recovering the guarantee payments and has written a white
paper which is under review. Final action completion is estimated to be 10/31/12.

13
Agency Financial Report ▪ FY 2012

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