SBA Office of Credit Risk Management Oversees Agency Lending Partners
WASHINGTON – Today, the House Committee on Small Business heard from Susan E. Streich, Director of the Small Business Administration’s (SBA) Office of Credit Risk Management (OCRM), on oversight of lending partners and programs.
“Unfortunately, as our economy drives forward, access to capital remains one of the top challenges for the nation’s job creators. When financing options are limited, small businesses have the unique opportunity to turn to the Small Business Administration and its numerous lending programs. These public-private partnerships offer government guarantees based on a multitude of factors. Annually, these programs provide capital assistance to small businesses in my state of Ohio to Florida and beyond,” said Ranking Member Steve Chabot (R-OH). “However, with any federal government program, vigorous and comprehensive oversight is mandatory to safeguard American taxpayer dollars. While this Committee conducts Congressional oversight, the SBA also dedicates an entire operating unit to this endeavor. The Office of Credit Risk Management is charged with overseeing lending partners and monitoring program risk.”
OCRM Has Taken Steps to Streamline Operations
“The mission of the Office of Credit Risk Management is to ensure the integrity and to maximize the effectiveness of SBA’s lending programs by managing portfolio risk, monitoring lender performance, and enforcing lending program requirements… Following the legislation [passage of the Small Business 7(a) Lending Oversight Reform Act of 2018], OCRM has begun increasing its staff, modifying its lender review processes, and implementing a rigorous training program to ensure that OCRM has the workforce capability and leadership in-house to support its heightened mission and responsibilities,” said Ms. Susan E. Streich, Director, Office of Credit Risk Management, United States Small Business Administration, in Washington, DC. “Over the last two years, OCRM has been seeking ways to better fulfill its mission while adapting to the current lending environment. OCRM has accomplished this by improving its operations and engaging in interagency partnerships with other federal regulators… OCRM continues to refine and streamline its approach to monitoring lender risk through its multi-level review process… The review process has been redesigned so that much of the analysis and loan file review activity is performed virtually, providing more timely feedback to the lenders under review and saving them the cost associated with the onsite review process.”