White Paper: Risk Awareness and Lessons Learned from Audits and Inspections of Economic Injury Disaster Loans and Other Disaster Lending [open pdf - 388KB]
From the Executive Summary: "The Small Business Administration (SBA's) Disaster Assistance Program is the Federal Government's primary program for providing disaster assistance to businesses. SBA provides up to $2 million in Economic Injury Disaster Loans (EIDLs) for substantial economic injury loss to small businesses and most private nonprofit organizations to help meet financial obligations and operating expenses. In response to the Coronavirus (COVID-19) pandemic, the Coronavirus Preparedness and Response Supplemental Appropriations Act (CVPR Act) deemed COVID-19 a disaster and authorized SBA to provide EIDLs to businesses and nonprofits affected by COVID-19. In addition, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided $10 billion to SBA to provide emergency EIDLs. This is a significant increase compared to prior major disasters. [...] We prepared this memorandum to provide SBA information regarding lessons learned and identified risks from prior audits and inspections that it should consider in managing and mitigating the risk of loss for COVID-19 related loans."
Small Business Administration, Office of the Inspector General, Report No. 2020-12