October 20, 2020
Hot Topic Tuesday — OIG Says Managing COVID-19 Stimulus is the Greatest Challenge Facing SBA in FY 21
On October 16, 2020 the SBA OIG published its annual report on the top management and performance challenges facing the SBA in the new fiscal year. “This report discusses several challenges and issues, many of which we have discussed in previous reports,” says SBA Inspector General, Hannibal Mike Ware. “[However,] managing COVID 19 stimulus is the greatest overall challenge facing SBA currently. This crucial new challenge is exacerbated by persisting management and performance challenges best described as systemic. Pandemic response has, in many instances, magnified the challenging systemic issues in SBA’s mission-related work.”
The OIG’s preliminary investigative oversight revealed strong indicators of widespread potential abuse and fraud within the SBA’s economic relief programs. To mitigate the effects of fraud, the OIG recommends that the SBA encourage financial institutions to identify disbursements that may have been obtained fraudulently when conducting PPP forgiveness reviews. In addition to PPP fraud, The SBA OIG encourages SBA to continue actively working on its oversight practices by conducting appropriate and consistent lender and loan-level reviews.
“Identification of an issue as a top challenge does not necessarily denote significant deficiencies or lack of attention on SBA’s part,” says Ware. “All but one of these challenges are longstanding, inherently difficult, and may likely continue to be challenges in the coming years. Resolving the challenges will require consistent, focused attention from agency management and ongoing engagement with Congress, the public, and other stakeholders.”
Report on the Most Serious Management and Performance Challenges By Office of Inspector General