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Top House Republican slams Small Business Administration after IG admits twice as much COVID loan fraud

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Top House Republican slams Small Business Administration after agency admits twice as much COVID loan fraud

of failing to protect coronavirus loan programs from fraud after a government report found that the agency disbursed over $200 billion in possibly fraudulent COVID-19 loans, nearly double that which was previously expected.COVID-19 pandemic loan

The Office of the Inspector General said the SBA"did not have an established strong internal control environment for approving and disbursing program funds," adding that"there was an insufficient barrier against fraudsters accessing funds that should have been available for eligible business owners adversely affected by the pandemic."

"These findings show the SBA failed to implement basic guardrails to protect the integrity of these programs, resulting in roughly 1 in 5 loans dispersed being labeled as potentially fraudulent."

 

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