SBA, through its Disaster Loan Program, is part of this  concerted effort. SBA and the Congress Responded to Small Businesses Affected by the September 11 Attacks

In the weeks and months following the terrorist attacks, SBA and the  Congress faced the challenge of responding to the lingering effects of the  attacks and subsequent federal actions on small businesses throughout the  country. As of the  end of fiscal year 2002, on average,SBA processed September 11 business  loans in 13 days, compared with 16 days for disaster assistance business  loans processed in fiscal year 20. Disaster Loan Program Performance Measures and Plans Have Limitations

As stated earlier, the strategic plan describes the multiyear strategic goals. We attribute some of these limitations to the specific  nature of the measures SBA uses to describe the performance of the  disaster lending program, while other limitations can be attributed to the  description of program’s performance in the plan itself. First, the three output measures do not capture the notable progress the  program has made in improving its loan processing; improvements that  ultimately benefit disaster loan applicants and borrowers, such as better  staffing processes and management of staff duties. For  example, as part of its response to September 11 borrowers, the Niagara  Falls DAO reduced the amount of documentation required for September  11 victims from the World Trade Center and Pentagon disaster areas to  receive disbursements of between $25,000 and $50,000, so that the DAO  could more quickly disburse the remaining amounts. Conclusions

The September 11 terrorist attacks presented SBA with challenges it had  never before faced. Viewing the performance measures in light of SBA’s  response to the September 11 attacks underscores this finding. Moreover, the limitations in the program’s performance measures and  plans mean that congressional decisionmakers do not have an accurate  description of SBA’s progress to help them make informed decisions in  directing and funding the Disaster Loan Program. To review and analyze SBA’s performance plans and measures for its  Disaster Loan Program, we reviewed SBA’s strategic plan for the 2001-2006  period and performance plan for fiscal years 2002 and 2003.
Why GAO Did This Study

The September 11 terrorist attacks and subsequent federal action had a substantial impact on businesses in both the declared disaster areas and around the nation. In the aftermath of the attacks, the Congress, among other actions, appropriated emergency supplemental funds to the Small Business Administration (SBA) to aid September 11 victims. Given the uniqueness of this disaster and changes in the program, GAO analyzed SBA's lending to September 11 victims, as well as the loan program's performance goals and measures.

What GAO Found

As part of its response to the September 11 terrorist attacks, SBA modified several aspects of its Disaster Loan Program and its processes. For example, SBA increased the maximum loan amounts available and decreased the amount of documentation required for certain loans. By the end of fiscal year 2002, approximately $1 billion in loans had been approved for victims of the attacks. On average, SBA processed business loans to September 11 victims in an average 13 days compared with 16 days for business loans to other disaster victims in fiscal year 2001. Like other federal programs, SBA has developed a multiyear strategic goal for the Disaster Loan Program--helping families and businesses recover from disasters--and has developed annual goals and measures to assess its yearly progress toward attaining their strategic goals. GAO reviewed the measures and found that they have numerous limitations. For instance, these measures do not capture the notable progress the program has made in improving its loan processing--progress that ultimately affects disaster loan applicants and borrowers. The inadequacies of SBA's measures are especially evident when considered in light of the agency's performance in responding to the September 11 terrorist attacks. GAO attributes some of these limitations to the nature of the measures SBA uses to describe the performance of the Disaster Loan Program, while others can be attributed to the description of the program's performance. Without better performance measures and plans, the Congress does not have an accurate description of SBA's annual progress toward helping Americans recover from disasters.