The Government Accountability Office (GAO) recently conducted an examination of the Commerce Department’s America COMPETES Act of 2010, which directed the establishment of a loan guarantee program.
GAO officials said the Commerce Department’s Economic Development Administration (EDA) has taken steps to implement the Federal Loan Guarantees for Innovative Technologies in Manufacturing (ITM) program, working with a contractor to develop a program manual that includes, among other things, standard operating procedures for interacting with clients once the program begins issuing loan guarantees.
GAO has acknowledged EDA’s future steps to implement the ITM program are uncertain because of a perceived lack of demand among small and medium sized businesses, competing regulatory priorities within Commerce, and reductions in available appropriations for the program.
EDA officials said they have found limited demand for the ITM program among medium-sized businesses and the technologies and small businesses eligible for loan guarantees through the ITM program could also be served by an existing SBA program.
The GAO scope of work assessed the steps EDA has taken to implement the ITM program and the extent to which EDA has addressed GAO’s previous recommendations.
GAO officials said the agency also analyzed applicable laws and program documents, interviewing EDA, SBA and National Institute of Standards and Technology (NIST) officials.