SBA Hot Topic Tuesday – SBA OIG to Continue Work on COVID Fraud in 2023
February 21, 2023
Delaney Sexton
Contributing Editor
SBA Hot Topic Tuesday – SBA OIG to Continue Work on COVID Fraud in 2023
The SBA Inspector General published their Oversight Plan for 2023 which outlines its audit and review priorities. They plan to continue their “focus on programs and operations that pose the highest risk to SBA operations, including disaster relief programs and supplemental programs designed to provide economic relief to businesses in response to the Coronavirus Disease 2019 pandemic.”
In FY23, the OIG plans to investigate and review these topics:
• Inspection of SBA’s action to improve lender oversight of Lender Service Providers (LSPs)
• SBA’s high-risk lender reviews
• SBA’s oversight of the Community Navigators Pilot Program
• SBA’s implementation of the Service-Disabled Veteran-Owned Small Business Certification Program
• SBA’s oversight of PPP loans processed by fintechs
• The process and guidance for returning PPP funds
• Eligibility and forgiveness of PPP loans
• Applicant fraud in the EIDL program
• SBA’s credit model for determining disaster assistance loan eligibility
• Inspection of SBA’s handling of identity theft in the EIDL program
• Project on using Artificial Intelligence to identify fraud in disaster assistance programs
• Oversight of SVOG recipients’ compliance with the award requirements
SBA OIG’s ongoing work includes reviewing the 7(a) loan program during the pandemic. Other work involving COVID relief programs includes:
• PPP loans exceeding maximum size standards
• Guaranty purchases for PPP loans
• Eligibility and forgiveness of PPP loans made to borrowers on the Treasury’s Do Not Pay list
• Internal controls to prevent Shuttered Venue Operators Grants to ineligible entities
• End collections on EIDLs under $100,000
• EIDL applicants on the Treasury’s Do Not Pay list
• Handling of returned EIDL funds
• Reconsideration process for EIDLs
• Recover fraudulent Restaurant Revitalization Funds
• Oversight of RRF program recipients
Their mandatory work will involve SBA’s compliance with improper payment reporting requirements, its financial statement audit, and other controls.