Small Business Administration: Inadequate Oversight of Capital Management Services, Inc.-an SSBIC

GAO discussed its investigation of a specialized small business investment company (SSBIC). GAO noted that: (1) the Small Business Adminstration's (SBA) oversight of the firm was inadequate; (2) the SSBIC director made questionable financing transactions with ineligible recipients or that violated SBA regulations; and (3) the director has been convicted of conspiracy to defraud SBA.