ABSTRACT

Small Business Administration: Actions Needed to Improve COVID-19 Loans' Internal Controls and Reduce Their Susceptibility to Fraud, Statement of William B. Shear, Director, Financial Markets and Community Investment, Testimony Before the Committee on Small Business and Entrepreneurship, U.S. Senate   [open pdf - 338KB]

From the Highlights: "SBA [Small Business Administration] has made or guaranteed more than 17 million loans and grants through PPP [Paycheck Protection Program] and the EIDL [Economic Injury Disaster Loans] program, providing about $910 billion to help small businesses adversely affected by COVID-19 [coronavirus disease 2019]. PPP provides potentially forgivable loans to small businesses, and EIDL provides low-interest loans of up to $2 million for operating and other expenses as well as advances (grants). However, the speed with which SBA implemented the programs left them susceptible to fraud. Given these concerns, GAO [Government Accountability Office] added these emergency loan programs to its High-Risk List in March 2021. This testimony discusses fraud risks associated with PPP and the EIDL program. It is based largely on GAO's June 2020 - January 2021 reports on the federal response, including by SBA, to the economic downturn caused by COVID-19 (GAO-20-625 [hyperlink], GAO-20-701 [hyperlink], GAO-21-191 [hyperlink], GAO-21- 265 [hyperlink]). For those reports, GAO reviewed SBA documentation and OIG [Office of the Inspector General] reports; analyzed SBA data; and interviewed officials from SBA and the Department of the Treasury."

Report Number:
GAO-21-472T
Author:
Publisher:
Date:
2021-03-24
Series:
Copyright:
Public Domain
Retrieved From:
Government Accountability Office: http://www.gao.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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