On August 19, 1993, at 1900 hours central daylight time, a Champion 7GCAA, N11027, piloted by the private pilot/airplane co-owner, experienced a loss of engine power during the initial climbout after performing a touch and go landing at Wilber, Nebraska. The airplane sustained substantial damage when it collided with trees during the ensuing forced landing. The pilot and one passenger reported no injuries. Visual meteorological conditions prevailed for the local flight, no flight plan was filed. The flight operated under 14 CFR Part 91, and originated from Wilber, Nebraska, approximately 1859 hours. The pilot's written statement indicated he performed a touch and go landing on Runway 32 (2,150' X 300', grass) at Wilber. He stated he experienced a loss of engine power at 100 to 150 feet above the ground during the initial climbout. The airplane collided with trees during the emergency descent and forced landing. The pilot reported the power loss was due to a mechanical malfunction/failure. Postaccident investigation revealed no evidence of preimpact mechanical difficulty. The engine was removed from the airframe and run up on a test stand. The engine started up promptly, and operated without hesitation at various power settings. An FAA Inspector's Statement is appended.