Small Business: A Comparison of SBA's 7(a) Loans and Borrowers With Other Loans and Borrowers

Pursuant to a congressional request, GAO reviewed the role that the Small Business Administration's (SBA) 7(a) Program plays in small business financing, focusing on: (1) the characteristics of 7(a) loans compared to small business loans in general; (2) how the characteristics of 7(a) borrowers compare with small business borrowers that did not obtain 7(a) loans; and (3) the reasons underlying private lending institutions' decisions to participate or not participate in the 7(a) program.