Reports
Search reports, investigative results, and agency plansShowing 1 - 10 of 53 results
Small Business Administration OIG
COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape Recommendations Update
This report updates Congress on progress made by the U.S. Small Business Administration (SBA) on the 39 open pandemic-related recommendations referenced in Office of Inspector General (OIG) Report 23-09, COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape. Over the course of the Coronavirus Disease 2019 (COVID-19) pandemic, SBA disbursed approximately $1.2 trillion of COVID-19 Economic Injury Disaster Loan and Paycheck Protection Program funds. The economic assistance was intended to help eligible small business owners and entrepreneurs adversely affected by the crisis. In Report 23-09, we...
Small Business Administration OIG
SBA’s Use of Hold Codes for Potentially Fraudulent PPP Loans Referred by Lenders
The Office of Inspector General (OIG) is issuing this management advisory to bring attention to concerns regarding SBA’s use of hold codes for potentially fraudulent Paycheck Protection Program (PPP) loans referred by lenders. Opportunities exist for SBA to enhance its handling of lender-referred PPP loans suspected of fraud or illegal activity and its process for capturing these loans to ensure they are promptly flagged to mitigate fraud risk and financial loss. SBA’s Office of Credit Risk Management (OCRM) established a project for lenders to refer PPP loans suspected of fraud or illegal...
Small Business Administration OIG
COVID-19: Data Sharing Project Finds Billions Paid to Same Likely Fraudsters Under Both the Unemployment Insurance and Economic Injury Disaster Loan Programs
The Office of Inspector General (OIG) is issuing this inspection report to determine whether data sharing between the Employment and Training Administration and the U.S. Small Business Administration (SBA) could mitigate the risk of fraudulent unemployment insurance benefit payments and SBA disaster program disbursements. In 2020, soon after Congress expanded the Unemployment Insurance and Economic Injury Disaster Loan Programs in response to the adverse economic effects caused by the Coronavirus Disease 2019 pandemic, the U.S. Department of Labor OIG and SBA OIG respectively began reporting...
Small Business Administration OIG
SBA’s Oversight of Non-Bank Lenders and Third-Party Service Providers Associated with PPP Loans
Over 5,300 lenders, including bank and non-bank lenders, participated in the Paycheck Protection Program (PPP), an $813.7 billion program that provided forgivable loans to eligible borrowers. The primary distinction between the two is that non-bank lenders are not federally regulated. Both were allowed to partner with third-party service providers to assist in the PPP loan process. We assessed the U.S. Small Business Administration’s (SBA) oversight of non-bank lenders, including financial technology (fintech), and third-party service providers in the PPP. Opportunities exist for SBA to...
Small Business Administration OIG
Approved Disaster Assistance Loans Matching COVID‐19 EIDLs and PPP Loans with Fraud Hold Codes
The Office of Inspector General is issuing this evaluation report to determine whether the U.S. Small Business Administration (SBA) approved disaster loan applications with related Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loans (EIDL) or Paycheck Protection Program (PPP) loans with fraud hold codes.In October 2022, SBA established an informal review process to match disaster assistance loan applications to pandemic loans that had fraud hold codes based on taxpayer identification numbers. In August 2023, the agency began transitioning to a new system that uses fraud...
Small Business Administration OIG
Report on the Most Serious Management and Performance Challenges by Office of Inspector General FY2025
This report represents our current assessment of the U.S. Small Business Administration's programs and activities that pose significant risks, including those that are particularly vulnerable to fraud, waste, error, mismanagement, or inefficiencies. The Challenges are not presented in order of priority, as we believe that all are critical management or performance issues.
Small Business Administration OIG
SBA’s Processing of COVID-19 Economic Injury Disaster Loan Reconsideration Requests
The Office of Inspector General is issuing this inspection report to assess the U.S. Small Business Administration’s (SBA) processing of Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loan (EIDL) reconsideration requests.SBA began accepting COVID-19 EIDL applications on March 12, 2020, and continued to accept them through December 31, 2021, when the COVID-19 EIDL program ended. COVID-19 EIDL applicants who were not approved for a loan could request the agency reconsider their loan application, initiating the reconsideration process.We found SBA generally processed reconsideration...
Small Business Administration OIG
Improvements Needed in SBA’s Shuttered Venue Operators Grant Post-Award Review Process
The Office of Inspector General (OIG) is issuing this management advisory to bring attention to concerns regarding the U.S. Small Business Administration’s (SBA) post-award review process to monitor Shuttered Venue Operators Grant (SVOG) award recipients’ eligibility, award calculation, and use of funds. The Shuttered Venue Operators Grant (SVOG) program was established on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act). The program was amended by the American Rescue Plan Act on March 11, 2021, which increased program...
Small Business Administration OIG
SBA’s Guaranty Purchases for Paycheck Protection Program Loans
The Office of Inspector General (OIG) is issuing this Inspection report to assess the Small Business Administration’s (SBA) guaranty purchase process for Paycheck Protection Program (PPP) loans. The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the PPP to provide guaranteed SBA loans for eligible businesses, individuals, and nonprofits adversely impacted by the Coronavirus Disease 2019 pandemic. We assessed whether SBA reported and referred charged-off PPP loans to commercial credit reporting agencies and the U.S. Department of Treasury in accordance with applicable...
Small Business Administration OIG
Evaluation of COVID-19 Economic Injury Disaster Loan Applicants on the U.S. Department of the Treasury’s Do Not Pay List
The OIG is issuing this evaluation to assess whether the U.S. Small Business Administration (SBA) effectively implemented internal controls when using the U.S. Department of the Treasury’s Do Not Pay (DNP) databases to detect and prevent payments of Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loans (EIDL) and grants to ineligible entities.Despite implementing controls requiring loan officers to check DNP databases prior to approval of COVID-19 EIDLs and provide applicants 30 days to rectify any negative information received from DNP, the agency continued to award and disburse...