ABSTRACT

Small Business Administration: Steps Needed to Address COVID-19 Loans' Susceptibility to Fraud, Statement of William B. Shear, Director, Financial Markets and Community Investment, Testimony Before the Select Subcommittee on the Coronavirus Crisis, Committee on Oversight and Reform, House of Representatives   [open pdf - 315KB]

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-21-449T
Author:
Publisher:
Date:
2021-03-25
Series:
Copyright:
Public Domain
Retrieved From:
Government Accountability Office: http://www.gao.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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