E2 Friday, December 27,1985
RICHMOND, Dec. 26ÛÓThe Small Business Administration will prevent Clarence Pendleton, chairman of the Commission on Civil Rights, from firing employes in his loan-packaging corporation until an audit is completed.</br></br>Pendleton wants to fire the employes of the San Diego County Local Development Corp., and put in charge his commission assistant, Sydney Novell, according a Media General Inc. report published in WednesdayÛªs Richmond Times-Dispatch.</br></br>Novell has a lucrative contract with the development corporation, which Pendleton heads. The corporation packages SBA loans for business in low-income areas.</br></br>The SBA launched an investigation of the firm when SBA officials expressed fears that Pendleton was turning the development corporation into a ÛÏprofit centerÛ for himself and Novell.</br></br>Under his plan, Pendleton wants to fire the corporationÛªs 12 employes, giving Novell control of all loan packages.