OTHER MARKETS

Economic Model Verification
SBA

Under contract to Cotton & Company, LLP, Econometrica is conducting verification tests of economic models used by the Small Business Administration (SBA). Econometrica’s work complements reviews of these models conducted by Ernst & Young. The focus of Ernst & Young’s reviews has been on the models’ adherence to legally mandated nomenclature and generally accepted accounting practices. Econometrica’s reviews focus on whether a specific model meets the generally accepted standards of statistical practice. In cases where models fail to meet generally accepted standards, Econometrica provides recommendations for enhancements or revisions to the model. Econometrica has completed verification tests on numerous SBA models, including the model of Section 504 loans and subsidies; the 7(a) model; the Secondary Market Guarantee (SMG) loan subsidy model; and the Disaster Loan Subsidy Model.