Ending Active Collections on Delinquent COVID-19 Economic Injury Disaster Loans

Audit · Small Business Administration OIG · 2023-09-29 · about Small Business Administration

Summary

The Small Business Administration's (SBA) Office of Inspector General (OIG) is issuing this management advisory to bring attention to concerns regarding SBA’s decision to end active collections on delinquent COVID-19 Economic Injury Disaster Loans (EIDL) with an outstanding balance of $100,000 or less.First, SBA’s decision to cease collections risks violating the Debt Collection Improvement Act of 1996, which prohibits ending collections on fraudulent, false, or misrepresented claims, because SBA OIG and other oversight agencies are continuing to work on identifying COVID-19 EIDL fraud

Recommendations (5)

#	Status	Text
1	Open	To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to perform a comprehensive cost-benefit analysis, consistent with federal regulations, to include…
2	Open	To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to reevaluate and amend as appropriate the April 27, 2022 decision to end active collections…
3	Open	To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to ensure SBA does not end active collections pursuant to the April 27, 2022 decision on any COVID-19…
4	Open	To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to ensure SBA does not end active collections on any COVID-19 EIDL that appears to be fraudulent,…
5	Open	To maximize the return to taxpayers, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to evaluate the COVID-19 EIDL portfolio, in collaboration with Treasury, to determine if selling the portfolio,…

Status

Text

Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to perform a comprehensive cost-benefit analysis, consistent with federal regulations, to include…

Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to reevaluate and amend as appropriate the April 27, 2022 decision to end active collections…

Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to ensure SBA does not end active collections pursuant to the April 27, 2022 decision on any COVID-19…

Open

To address concerns in the COVID-19 EIDL program, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to ensure SBA does not end active collections on any COVID-19 EIDL that appears to be fraudulent,…

Open

To maximize the return to taxpayers, we recommend the Administrator direct the Associate Administrator for the Office of Capital Access to evaluate the COVID-19 EIDL portfolio, in collaboration with Treasury, to determine if selling the portfolio,…

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Summary

Recommendations (5)

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