COVID-19 EIDL Program Recipients on the Department of Treasury's Do Not Pay List
Review · Small Business Administration OIG · 2021-11-30 · about Small Business Administration
Report
Title
COVID-19 EIDL Program Recipients on the Department of Treasury's Do Not Pay List
Submitting OIG
Small Business Administration OIG
Component agency
Small Business Administration
Type
Review
Publication date
2021-11-30
Summary
We produced this Management Advisory to notify Small Business Administration (SBA) officials of serious concerns about potential improper payments in SBA’s Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loan (EIDL) program.Our review of Treasury’s analysis of processed COVID-19 EIDL and emergency EIDL grants from March to November 2020 revealed that SBA’s lack of adequate pre-award controls during this period of review led to 75,180 COVID-19 EIDLs totaling over $3.1 billion and 117,135 emergency EIDL grants totaling over $550 million being disbursed to potentially ineligible r
Recommendations (3)
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Status
Text
1
Closed
Implement prepayment and preaward procedures and use the batch match or continuous monitoring functions available in Treasury’s DNP system to identify potentially ineligible applicants before disbursing COVID-19 EIDL program funds.
2
Open
Use Treasury’s DNP analysis to systemically flag COVID-19 EIDL and Emergency EIDL grant recipients who were found in Treasury’s DNP system and not previously reported by OIG. Review the applications and determine whether they are deemed ineligible. If…
3
Open
For all COVID-19 EIDLs and Emergency EIDL grants identified and flagged as potentially ineligible above, include those transactions in SBA’s 2021 improper payments estimation process.