Follow-up Inspection of SBA’s Internal Controls to Prevent COVID-19 EIDLs to Ineligible Applicants
Inspection / Evaluation · Small Business Administration OIG · 2022-09-29 · about Small Business Administration
Report
Title
Follow-up Inspection of SBA’s Internal Controls to Prevent COVID-19 EIDLs to Ineligible Applicants
Submitting OIG
Small Business Administration OIG
Component agency
Small Business Administration
Type
Inspection / Evaluation
Publication date
2022-09-29
Summary
This report presents the results of our follow-up inspection to assess the effectiveness of the U.S. Small Business Administration’s (SBA) enhanced internal controls to prevent Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loans (EIDL) to ineligible applicants.The Coronavirus Aid, Relief, and Economic Security (CARES) Act prohibited the agency from requiring tax return transcripts to prove eligibility. Congress eliminated this restriction 9 months later with the Consolidated Appropriations Act, 2021.
Recommendations (2)
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Status
Text
1
Open
Review the 20 loans identified in this report as ineligible for the COVID-19 EIDL that the applicants received and recover approximately $2 million improperly disbursed to the applicants.
2
Open
Review the COVID-19 EIDL disbursements with suspect Taxpayer Identification Numbers made after December 27, 2020 to determine if the loan files contain conclusive evidence that the applicant business existed on January 31, 2020, and therefore, met the…