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INTRODUCTION TO THE LOSS REPORT
The FY 2001 Small Business Administration (SBA) Loss Report provides information to management on the Agency’s
loss experience for its various loan programs. The Loss Report focuses on the actual losses as a percentage of
disbursements made to date on SBA loan programs. The report allows the user, at a glance, to review historical and
current year data for each of the Agency’s primary lending programs. The report combines the results of loans made
since FY 1992 that are subject to the requirements of Federal Credit Reform accounting (credit reform loans) with the
results of loans made prior to FY 1992 (pre-credit reform loans) that are not subject to this accounting requirement.
The concept of charge-off deserves some explanation. The SBA has extensive debt servicing and collection
procedures using all reasonable efforts to assure maximum recovery of loans prior to charge-off. These procedures
include the use of modern collection methods and the acquisition and sale of collateral through liquidation processes.
Only after the Agency has exhausted these collection methods does SBA classify a loan as charged-off. For guaranty
loans, the loan must first be purchased from the participating lender before this classification can be made. Also,
charge-off is a reportable status assigned as a debt to the Agency. The assignment of this status does not preclude the
Agency from further collection remedies if it is determined that these efforts would result in additional collections to
the Agency. It should be noted that charged-off loan amounts are principal only, and do not include accrued interest.
This Loss Report includes a variety of additional data. It includes losses and gains on the sale of collateral for the
current fiscal year (real estate and other property) acquired due to borrower loan defaults. This property is known as
“ColPur.” In addition, it includes other “costs of doing business” to service and liquidate defaulted loans that have
been added to the loss of principal since 1992 to give a complete picture of the component costs of SBA lending
programs. We have not included, however, the losses on the sale of acquired collateral in the historical program loss
rates due to the lack of historical information. Finally, during FY 2001 the SBA, as part of its Loan Asset Sale
program, conducted asset sale numbers 3 and 4. Before a loan sale, the portfolio to be sold is reviewed to write down
overvalued loans. The results of the write down are also included in this Loss Report.
The SBA uses loss data as part of its process to compute the subsidy rate for its loan programs. However, the loss
rates developed in this Loss Report are not directly comparable with the SBA’s subsidy rates. This is due to the other
factors included in the subsidy rate computation such as loan fees, the present value of cash flows and interest rate
considerations. As a result, the loss rates developed in this report are not easily compared to the subsidy rates on
SBA’s loan programs.
This report is prepared using the SBA’s official records including general ledger and loan accounting system data.
SBA LOAN PROGRAMS
General Information
The following general information applies to business loans. Disaster loans are covered in a separate section of this
report. Also, all guidelines are of a general nature and subject to exceptions. Many of the loan programs discussed
have been discontinued, although the SBA continues to maintain these loans in its portfolio.
Direct Loans were historically available only to certain special categories of borrowers unable to obtain lender
participation loans. Direct loans are disbursed directly from SBA appropriated funds. Currently, SBA only lends
directly in the Microloan Business Program and the Disaster Loan Program.
Immediate Participation (IP) Loans historically were made jointly by SBA and private lenders when guaranty loans
were unavailable to the borrower. This program has been inactive for years. For the purposes of this Loss Report,
these loans are included in the Direct Loan category.
Guaranty Loans are made and disbursed by private lenders with the SBA providing a guaranty of up to 85 percent.
Upon borrower default, the SBA purchases the guaranty percentage of the unpaid balance of the loan. The maximum
loan amount is $2,000,000 but the maximum exposure allowable the SBA guaranty is $1,000,000.
Loan Proceeds may be used to establish a new business or to assist in the operation, acquisition, or expansion of an
existing business. Loan proceeds may be used for working capital, the purchase of inventory, machinery and
equipment, and the construction, expansion and rehabilitation of business property.
Loan Maturity varies according to the prudent economic life of the assets being financed, subject to the following
maximums:
Working Capital - 7 to 10 years
Machinery and Equipment - 10 to 25 years
Building Construction or Purchase - 25 years
Interest Rates are determined by the SBA program office for direct loans. Guaranty loan rates may not exceed the
New York prime rate by more than 2.25% for loans with a maturity of less than 7 years, or 2.75% for loans with a
maturity of 7 years or more.
What follows is a more specific discussion of the various SBA loan programs.
GENERAL BUSINESS PROGRAM
Defined under Section 7(a) of the Small Business Act, the 7(a) program is now more accurately called the General
Business Program and is the largest of SBA's lending programs. The program promotes small business formation and
growth by providing long-term loan guaranties to qualified firms.
General Business loans are always guaranty loans. The IP and direct loan programs for general business loans were
discontinued in 1993. Direct loans included Economic Opportunity, Small Business Energy, Handicap Assistance,
Veterans, Pollution Control, and Import Export Loan programs.
DEVELOPMENT COMPANY PROGRAM
The Development Company program is actually a grouping of four separate and distinct lending programs defined
under Section 7(a)(13) of the Small Business Act and Title V of the Small Business Investment Act. In general, all
four programs consist of loans made through development companies for the purpose of fostering economic
development in both urban and rural areas.
Section 501 (State) development companies are funded by a partnership arrangement between SBA and state
governments. State development company loans are direct in nature. This program was discontinued in 1982.
Section 502 (Local) development companies were similar in nature to the Section 501 Loan program, only local, rather
than state, governments are involved. The Section 502 program loan making activity was discontinued in 1995.
Section 503 and 504 (Certified) development companies provide fixed asset financing to small businesses for the
construction or rehabilitation of owner-occupied or leased premises. These are guaranty loans only. The Section 503
program was discontinued in 1986, but replaced by the Section 504 program that continues today.
U.S. COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM (CAIP)
The Department of Treasury entered into an agreement with the North American Development Bank
(NADBank) to create and fund this program. The CAIP is designed to help American communities that have
suffered significant job losses as a result of changing trade patterns brought about by the North American Free
Trade Agreement. The CAIP provides economic support by increasing the availability and flow of credit, and
encourages business development and expansion in impacted areas. Through the CAIP, credit is available to
businesses in eligible communities to create new, sustainable jobs or to preserve existing jobs.
The CAIP is available with both the SBA 7(a) Loan Guaranty Program and the 504 Program to reduce
borrower costs and increase the availability of these proven business assistance programs.
The CAIP and the SBA 7(a) Program: The SBA 7(a) Loan Guaranty Program provides lenders with a
guaranty on loans and lines of credit to small businesses. For loans that meet the eligibility requirements
of the CAIP, the NADBank pays the SBA loan guaranty fee that is typically paid by the lending
institution or the borrower. This fee is based on the size of the loan guaranty and ranges from 2 to 3.5
percent of the amount of the guaranty.
The CAIP and the SBA 504 Program: The SBA 504 Program was an addition to the CAIP. It is
designed to assist businesses in the acquisition of long term fixed assets. The typical transaction has
three components: First, a commercial lender provides 50 percent of the purchase price of real estate or
equipment; Second, the borrower provides at least 10 percent of the amount; and Third, the SBA
provides the balance through a Certified Development Corporation (CDC) and funded through the
issuance of debentures. The up front costs for this portion of the loan are borne by the borrower and can
amount to several thousand dollars, depending on the size of the transaction. As with the 7(a) CAIP
Program, the CAIP may reimburse much of these costs for the borrower on eligible projects.
SMALL BUSINESS INVESTMENT COMPANIES
SBA’s Small Business Investment Company (SBIC) program provides long-term loans and/or venture capital to
small firms. SBICs are privately owned and operated investment companies that are licensed and regulated by
SBA. Venture capitalists participate in the SBIC program to supplement their own private capital through the
issuance of SBA guaranteed debentures and preferred securities that are sold to private investors. SBA also
licenses specialized SBICs (SSBICs) that specialize in meeting the needs of small firms owned by socially or
economically disadvantaged persons. In the past, SSBICs could also leverage their own private capital by
selling non-voting preferred stock to SBA and some of it is still outstanding. SBIC’s also issue participating
securities that are guaranteed by SBA and that provide SBA potential revenue for its guaranty of timely
payment of amounts due to the debenture holders. The following types of investments are commonly used by
SBICs:
Loans with Warrants: SBICs may make loans in return for warrants that enable them to purchase
common stock, usually at a favorable price, during a specific period of time.
Convertible Debentures: SBICs may make loans with a conversion feature whereby the debenture can be
converted, at the SBIC's option, into an equivalent amount of common stock.
Stock: SBICs may purchase common or preferred stock from small firms.
Partnership Interests: SBICs may purchase a limited partnership interest in a partnership.
DISASTER LOAN PROGRAM
Under the Disaster Loan Program, business owners, individuals, and nonprofit organizations are eligible for
SBA financial assistance to repair the damage caused by natural disasters such as hurricanes, floods, and
tornadoes. When the President or the SBA Administrator declares a specific area to be a disaster area, SBA
offers two types of direct loans:
Physical Damage Disaster Loans are available to homeowners, renters, large and small businesses, and
nonprofit organizations.
Economic Injury Disaster Loans are made to small businesses and small agricultural cooperatives that
suffer substantial economic injury because of a physical disaster.
Interest rates on Disaster Loans are handled differently than other loans. For Business Loans, if a borrower is
deemed able to obtain credit elsewhere, the interest rate may not exceed 8 percent. If these businesses cannot
obtain alternative financing, the interest rate may not exceed 4 percent. For homeowners, the interest rate on
Disaster Home Loans also follows the credit-elsewhere test, but the rates depend on the Treasury cost of funds.
Loan maturity is also based on credit eligibility. Disaster Business Loan borrowers eligible for credit from other
sources generally receive loans with a maturity not to exceed 3 years. Those borrowers that are unable to
secure credit elsewhere can receive loans with a maturity of up to 30 years.
MICROLOAN PROGRAM
The Microloan Demonstration Program, established in FY 1992, is to assist women, low income, and minority
entrepreneurs possessing the capability to operate successful business concerns. The program also assists small
business concerns in those areas suffering from a lack of credit due to economic downturn. The SBA makes
direct loans to eligible and qualified intermediary lenders who then use the loan proceeds to make short-term,
fixed interest rate microloans. These loans, usually made for less than the $35,000 maximum, are for start-up,
newly established and growing small business concerns. In conjunction with the loans made to intermediary
lenders, SBA will make grants to such intermediary lenders to be used to provide intensive marketing,
management, and technical assistance for microloan borrowers. SBA is authorized to make limited grants to
eligible non-profit entities to provide marketing, management, and technical assistance to help low income
individuals obtain private sector financing for their small businesses.
SBA LOAN LOSS REPORT
SECTION I
Actual Losses
On Pre Credit Reform and Credit Reform Loans
(Consolidated)
* General Business
Loans Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $5,521,257,814 $88,358,068,575 $93,879,326,388
FY 2001 $0 $6,196,271,273 $6,196,271,273
Cumulative Disbursements $5,521,257,814 $94,554,339,847 $100,075,597,661
** Charged Off Loans
Balance as of 2000 $1,140,631,073 $5,961,121,527 $7,101,752,600
2001 Loan Principal $389,239 $274,320,905 $274,710,144
2001 Judgment Principal $201,185 $4,405,642 $4,606,827
2001 Other Receivables $2,551,814 $5,252,916 $7,804,729
Cumulative Charged Off Loans $1,143,773,311 $6,245,100,989 $7,388,874,300
Recoveries
Balance as of 2000 $66,430,161 $256,509,880 $322,940,041
FY 2001 $1,083,170 $7,518,204 $8,601,374
Cumulative Recoveries $67,513,331 $264,028,084 $331,541,415
Actual Net Losses
Cumulative Charged Off Loans Net of
Cumulative Recoveries $1,076,259,980 $5,981,072,905 $7,057,332,885
Actual Loss Rate 19.49% 6.33% 7.05%
(Actual Losses/Disbursements)
* The following loan programs are included: 7(a), 8(A), Economic Opportunity, Small Business Energy,
Handicap Assistance, Veterans, Pollution Control, and Import Export.
** Asset sales data is also included.
Development Company
Loans Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $696,140,948 $13,321,837,620 $14,017,978,568
FY 2001 $0 $1,450,615,105 $1,450,615,105
Cumulative Disbursements $696,140,948 $14,772,452,725 $15,468,593,673
Charged Off Loans
Balance as of 2000 $194,148,689 $224,369,252 $418,517,941
2001 Loan Principal $1,089,036 $24,031,426 $25,120,462
2001 Judgment Principal $0 $0 $0
2001 Other Receivables $0 ($168,462) ($168,462)
Cumulative Charged Off Loans $195,237,725 $248,232,216 $443,469,941
Recoveries
Balance as of 2000 $8,729,468 $8,573,547 $17,303,015
FY 2001 ($795,136) $13,282 ($781,855)
Cumulative Recoveries $7,934,332 $8,586,828 $16,521,160
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $187,303,393 $239,645,388 $426,948,781
Actual Loss Rate 26.91% 1.62% 2.76%
(Actual Losses/Disbursements)
Small Business Investment
Companies (SBIC) Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $798,220,667 $6,118,360,846 $6,916,581,513
FY 2001 $0 $1,239,990,000 $1,239,990,000
Cumulative Disbursements $798,220,667 $7,358,350,846 $8,156,571,513
Charged Off Loans
Balance as of 2000 $180,525,391 $352,160,090 $532,685,481
2001 Loan Principal $2,327,571 $50,372 $2,377,943
2001 Judgment Principal $9,138,422 $382,947 $9,521,369
2001 Other Receivables $1,479,106 $0 $1,479,106
Cumulative Charged Off Loans $193,470,490 $352,593,410 $546,063,899
Recoveries
Balance as of 2000 $6,975,453 $43,719,974 $50,695,427
FY 2001 $1,576,954 $3,380,636 $4,957,590
Cumulative Recoveries $8,552,406 $47,100,610 $55,653,016
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $184,918,083 $305,492,800 $490,410,883
Actual Loss Rate 23.17% 4.15% 6.01%
(Actual Losses/Disbursements)
USCAIP Guaranty Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $0 $52,508,922 $52,508,922
FY 2001 $0 $11,396,074 $11,396,074
Cumulative Disbursements $0 $63,904,996 $63,904,996
Charged Off Loans
Balance as of 2000 $0 $72,458 $72,458
2001 Loan Principal $0 $570,879 $570,879
2001 Judgment Principal $0 $0 $0
f
2001 Other Receivables $0 $0 $0
Cumulative Charged Off Loans $0 $643,337 $643,337
Recoveries
Balance as of 2000 $0 $0 $0
FY 2001 $0 ($82,023) ($82,023)
Cumulative Recoveries $0 ($82,023) ($82,023)
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $0 $725,360 $725,360
Actual Loss Rate 0.00% 1.14% 1.14%
(Actual Losses/Disbursements)
Microloan Loans Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $88,917,983 $9,658,106 $98,576,089
FY 2001 $24,983,166 $1,210,500 $26,193,666
Cumulative Disbursements $113,901,149 $10,868,606 $124,769,755
Charged Off Loans
Balance as of 2000 $0 $0 $0
2001 Loan Principal $0 $0 $0
2001 Judgment Principal $0 $0 $0
2001 Other Receivables $0 $0 $0
Cumulative Charged Off Loans $0 $0 $0
Recoveries
Balance as of 2000 $0 $0 $0
FY 2001 $0 $0 $0
Cumulative Recoveries $0 $0 $0
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $0 $0 $0
Actual Loss Rate 0.00% 0.00% 0.00%
(Actual Losses/Disbursements)
All Business Loans Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $7,104,537,412 $107,860,434,069 $114,964,971,481
FY 2001 $24,983,166 $8,899,482,951 $8,924,466,117
Cumulative Disbursements $7,129,520,578 $116,759,917,021 $123,889,437,599
** Charged Off Loans
Balance as of 2000 $1,515,305,152 $6,537,723,327 $8,053,028,480
2001 Loan Principal $3,805,845 $298,973,583 $302,779,428
2001 Judgment Principal $9,339,607 $4,788,589 $14,128,196
2001 Other Receivables $4,030,920 $5,084,454 $9,115,374
Cumulative Charged Off Loans $1,532,481,525 $6,846,569,952 $8,379,051,477
Recoveries
Balance as of 2000 $82,135,081 $308,803,401 $390,938,483
FY 2001 $1,864,987 $10,830,098 $12,695,086
Cumulative Recoveries $84,000,069 $319,633,500 $403,633,568
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $1,448,481,456 $6,526,936,453 $7,975,417,909
Actual Loss Rate 20.32% 5.59% 6.44%
(Actual Losses/Disbursements)
** Asset sales data is also included.
Disaster Loans Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $22,839,628,445 $39,817,968 $22,879,446,413
FY 2001 $585,774,270 $0 $585,774,270
Cumulative Disbursements $23,425,402,715 $39,817,968 $23,465,220,683
** Charged Off Loans
Balance as of 2000 $2,324,474,980 $1,936,933 $2,326,411,913
2001 Loan Principal $200,038,320 $24 $200,038,344
2001 Judgment Principal $1,254,752 $0 $1,254,752
2001 Other Receivables $882,203 $140,892 $1,023,096
Cumulative Charged Off Loans $2,526,650,256 $2,077,849 $2,528,728,105
Recoveries
Balance as of 2000 $179,308,968 $8,805 $179,317,773
FY 2001 $14,539,666 $2,556 $14,542,222
Cumulative Recoveries $193,848,634 $11,361 $193,859,995
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $2,332,801,622 $2,066,488 $2,334,868,110
Actual Loss Rate 9.96% 5.19% 9.95%
(Actual Losses/Disbursements)
** Asset sales data is also included.
All Agency Programs Direct/IP Guaranteed Program Total
Disbursements
Balance as of 2000 $29,944,165,857 $107,900,252,037 $137,844,417,894
FY 2001 $610,757,436 $8,899,482,951 $9,510,240,388
Cumulative Disbursements $30,554,923,293 $116,799,734,989 $147,354,658,282
** Charged Off Loans
Balance as of 2000 $3,839,780,133 $6,539,660,260 $10,379,440,393
2001 Loan Principal $203,844,166 $298,973,606 $502,817,772
2001 Judgment Principal $10,594,359 $4,788,589 $15,382,948
2001 Other Receivables $4,913,123 $5,225,346 $10,138,469
Cumulative Charged Off Loans $4,059,131,781 $6,848,647,801 $10,907,779,582
Recoveries
Balance as of 2000 $261,444,050 $308,812,206 $570,256,256
FY 2001 $16,404,653 $10,832,654 $27,237,307
Cumulative Recoveries $277,848,702 $319,644,861 $597,493,563
Actual Net Losses
Cumulative Charged Off Loans Net
of Cumulative Recoveries $3,781,283,079 $6,529,002,940 $10,310,286,019
Actual Loss Rate 12.38% 5.59% 7.00%
(Actual Losses/Disbursements)
** Asset sales data is also included.
SBA LOAN LOSS REPORT
SECTION II
OTHER PROGRAM COSTS
OTHER PROGRAM COSTS
The SBA term "ColPur" represents pledged collateral, the title to which is held by the SBA following the
borrower’s default on a loan. Title may be transferred to SBA in one of two ways. First, a borrower may enter
into a compromise agreement with SBA, offering the collateral in lieu of payment. A fair market value is
assigned to the collateral and the borrower's indebtedness is reduced accordingly. The second method is
through outright purchase of the property. Once obtained, the collateral is auctioned off at a sale. SBA issues a
protective bid on the property that effectively results in SBA buying-out all prior lien-holders and assuming
title to the property.
This collateral is held only until the SBA can sell it - recovering what it can from the sale. In cases where the
amount recovered is less than what the SBA paid or compromised the property for, a loss on ColPur is
recognized. In some cases, the sales proceeds for the collateral are greater than the ColPur value, and a gain is
recognized on the sales transaction.
In 2001, the SBA, as part of its Loan Asset Sale program, sold $2.291 billion of loans for $1.535 billion before
expenses. As a result of this sale, the SBA recognized a $670 million accounting loss. This represents the
difference between the “adjusted” book value and the sales proceeds from investors. The SBA expected to
recover less than $670 million if it held and serviced the loans itself until they matured. Therefore, the sales
were deemed successful and in the best interest of the Government. The effects of these loan asset sales
transactions are not included in the Loss Report.
The term “In Kind Distribution” is distributions the SBA receives from Small Business Investment
Corporations (SBIC). These distributions are generally in the form of securities. The SBIC may distribute to
the SBA securities in lieu of payment of interest advances, distribution of profits, or a prepayment in the
reduction of the underlying security. Normally the distributions are held only for a short period of time before
they are sold. A gain or loss is recognized on the sale on each security.
The costs discussed above are summarized for FY 2001 on the following pages.
Other Program Costs:
Total Non-Recoverable Expenses and Net Losses on ColPur in FY 2001
* Gen.
Business Local Dev SBIC Disaster Total
GAINS
Gain on Sale of ColPur $1,912,492 $1,600,658 $103,821 $609,605 $4,226,576
Income Earned on Assets
Acquired $0
Gross Gains on ColPur $1,912,492 $1,600,658 $103,821 $609,605 $4,226,576
LOSSES
Loss on Sale of ColPur $4,442,889 $221,790 $2,523,217 $659,722 $7,847,619
Expenses Incurred on Assets
Acquired $0 $0 $0 $0 $0
Gross Losses on ColPur $4,442,889 $221,790 $2,523,217 $659,722 $7,847,619
Net Gain (Loss) on ColPur ($2,530,398) $1,378,868 ($2,419,397) ($50,117) ($3,621,043)
Total Additional Program
Costs $2,530,398 ($1,378,868) $2,419,397 $50,117 $3,621,043
Other Program Costs: SBIC In Kind Securities Activity in FY 2001
* Gen.
Business Local Dev SBIC Disaster Total
GAINS
Gain on Sale of In Kind $2,377,236 $2,377,236
Securities
LOSSES
Loss on Sale of In Kind $13,840,768 $13,840,768
Securities
Net Gain (Loss) on In Kind ($11,463,532) ($11,463,532)
Securities
Total Additional Program $11,463,532 $11,463,532
Costs
* The following loan programs are included: 7(a), 8(A), Economic Opportunity, Small Business Energy,
Handicap Assistance, Veterans, Pollution Control, and Import Export.
Other Program Costs: Net Losses on Asset Sales in FY 2001
* Gen.
Business Local Dev SBIC Disaster Total
GAINS
Gain on Asset Sales $18,241,567 $619,301 $0 $0 $18,860,868
LOSSES
Loss on Asset Sales $309,231,632 $14,258,697 $0 $365,285,236 $688,775,565
Expenses Incurred on Asset Sales $0
Gross Losses on Asset Sales $309,231,632 $14,258,697 $0 $365,285,236 $688,775,565
Net Gain(Loss) on Asset Sales ($290,990,065) ($13,639,396) $0 ($365,285,236) ($669,914,698)
* The following loan programs are included: 7(a), 8(A), Economic Opportunity, Small Business Energy,
Handicap Assistance, Veterans, Pollution Control, and Import Export.
GLOSSARY OF TERMS
Actual Loss Rate
Calculated as a percentage, this figure represents the ratio of net losses to total disbursements. Both net losses
and disbursements are cumulative, inception to date for the program.
Asset Sales
The SBA is in the process of selling its loan portfolio to the private sector. The purchasers will be responsible
for the servicing of the loans.
ColPur
This term is an abbreviation for "Collateral Purchased" and refers to pledged collateral that the Agency holds
title to following borrower default on a loan.
Credit Reform
Accountability requirements pursuant to the Federal Credit Reform Act of 1990 in which credit program costs
are recognized at the time obligations are incurred and reflect loan subsidies and Treasury borrowings as
component cost elements.
Disbursements
Cumulative total of the principal amount loaned under a particular program. Depending on the loan type (i.e.
Direct, Guaranty, or Immediate Participation), the disbursement of monies is made by SBA, the participating
lender, or both.
In-Kind Distribution
The SBA receives stock dividends from Small Business Investment Companies (SBIC) that are sold.
Judgment
A judgment is obtained when SBA goes to court in order to collect on a defaulted loan.
Loans Charged-Off
The cumulative total of principal balance still owed SBA that has been determined uncollectible.
Recoveries
Borrower payments of principal and interest, judgments and other receivables applied to loans charged-off.
Last Modified: 12-09-02