GSA - SBA 504 Program CDC Risk Based Review & Oversight - MRAS

The General Services Administration (GSA), on behalf of the Small Business Administration (SBA), is conducting market research to identify potential contractors capable of enhancing the oversight and monitoring processes for SBA's 504 Loan Program. The SBA, an independent agency established in 1953, plays a crucial role in supporting small businesses by providing long-term capital through its 504 Loan Program. This program is instrumental in promoting economic development by enabling small businesses to purchase or improve fixed assets or real estate. The program operates through Certified Development Companies (CDCs) that arrange, close, service, and manage these loans using pooled funds from debentures sold in capital markets.

The SBA's Office of Credit Risk Management (OCRM) within the Office of Capital Access (OCA) is responsible for managing credit risk across its lending programs. This includes overseeing CDCs to analyze and assign risk profiles, thereby ensuring that these entities comply with SBA Loan Program Requirements as outlined in various regulations and standard operating procedures. The contractor sought by the SBA will be tasked with innovating and improving these oversight processes through risk-based reviews and assessments of CDCs, ensuring compliance with federal regulations such as 13 C.F.R. Part 120 and various SOPs.

Specifically, the contractor must have a deep understanding of existing SBA processes related to risk-based reviews and demonstrate experience with large-scale risk management practices akin to those used by federal banking regulators. The contractor should also be proficient in providing services that reflect current regulatory and industry best practices while maintaining alignment with evolving accounting principles and federal banking regulations. Preferred candidates will have experience conducting reviews under AICPA standards, forensic reviews, Agreed Upon Procedures reviews, and audits involving financial standards.

Additionally, the SBA is interested in contractors who can offer a Virtual Data Room solution to facilitate secure data access during these oversight activities. This capability will support efficient data management and sharing between the SBA and CDCs during assessments. Ultimately, this initiative aims to ensure that CDCs are adhering to program requirements while providing optimal value both to the agency itself and its lending partners.