Economic Injury Disaster Loan Program: Additional Actions Needed to Improve Communication with Applicants and Address Fraud Risks, Report to Congressional Addressees [open pdf - 5MB]
From the Government Accountability Office (GAO) Highlights: "Between March 2020 and February 2021, SBA [Small Business Administration] provided about 3.8 million low-interest EIDL [Economic Injury Disaster Loan] loans and 5.8 million grants (called advances) totaling $224 billion to help small businesses adversely affected by COVID-19 [coronavirus disease 2019]. Borrowers can use these low-interest loans and advances to pay for operating and other expenses. The CARES [Coronavirus Aid, Relief, and Economic Security] Act includes a provision for GAO to monitor funds provided for the COVID-19 pandemic. This report examines, among other objectives, the characteristics of program applicants and recipients; the challenges EIDL applicants experienced and the extent to which SBA has addressed them; and the steps SBA has taken to address risks of fraud and provision of funds to ineligible applicants. GAO reviewed documents from SBA, an EIDL contractor, and two of its subcontractors. In addition, GAO analyzed loan application data, conducted five discussion groups with applicants, and interviewed staff from SBA, six Small Business Development Centers, and six business associations. GAO also analyzed socioeconomic, demographic, and geographic data on EIDL program participants."
Government Accountability Office: http://www.gao.gov/