Reports

Search for reports and investigative results.

Federal Reserve Board & CFPB OIG

The Board Has Effective Processes to Collect, Aggregate, Validate, and Report CARES Act Lending Program Data

Audit | 2/28/2022

Small Business Administration OIG

SBA’s Handling of Potentially Fraudulent Paycheck Protection Program Loans

The Office of Inspector General (OIG) found that the Small Business Administration (SBA) did not have an organizational structure with clearly defined roles, responsibilities, and processes to manage and handle potentially fraudulent Paycheck Protection Program (PPP) loans across the program. In addition, the agency did not establish a centralized entity to design, lead, and manage fraud risk. This problem occurred because the agency did not establish a sufficient fraud risk framework at the start of and throughout PPP implementation. Management stated this was partly due to the speed of the...

Full Details: Oversight.gov Report Page

Inspection / Evaluation | 5/26/2022

Department of Commerce OIG

EDA Needs to Improve Oversight of CARES Act Revolving Loan Funds to Ensure Loans Are Made to Eligible Borrowers and Used as Intended

Our audit found that loan costs claimed by the RLF operators were not allowable, allocable, and reasonable. Specifically, we found that the four operators awarded 11 of the 19 loans (58 percent), totaling $4,020,050, to ineligible borrowers that did not meet the eligibility criteria in the operators’ respective RLF operational plan, and borrowers did not use the RLF funds for the purpose intended by the CARES Act. As a result, we are questioning $4,020,050 in loan funds. In addition, we found RLF operators with 20 percent or more loans that were delinquent, in default, or written off, and EDA...

Full Details: Oversight.gov Report Page

Audit | 4/30/2025

1. - Closed

1. We recommend that the Acting Assistant Secretary of Commerce for Economic Development Administration instruct the Director, Performance, Research and National Technical Assistance Division (or designee, including the Interim RLF Coordinator) to review and make a determination regarding the allowability of the $4,020,050 in questioned costs with the respective RLF operators’ loans that were made to ineligible borrowers and not used for their intended purposes.

2. - Closed

2. We recommend that the Acting Assistant Secretary of Commerce for Economic Development Administration instruct the Director, Performance, Research and National Technical Assistance Division (or designee, including the Interim RLF Coordinator), to take appropriate actions for all noncompliances identified, such as suspending or terminating the RLF operator’s grant if not in compliance with federal regulations and their RLF plans.

3. - Closed

3. We recommend that the Acting Assistant Secretary of Commerce for Economic Development Administration instruct the Director, Performance, Research and National Technical Assistance Division (or designee, including the Interim RLF Coordinator), to ensure EDA provides oversight of the RLF operators to ensure loans are made to eligible borrowers and used for their intended purposes.

4. - Open

4. We recommend that the Acting Assistant Secretary of Commerce for Economic Development Administration instruct the Director, Performance, Research and National Technical Assistance Division (or designee, including the Interim RLF Coordinator), to develop procedures to ensure that the Risk Analysis System identifies areas of concern (such as high delinquent, default, or write off rates) and require that appropriate corrective actions are taken to address these areas of concern.

Federal Reserve Board & CFPB OIG

The Board and FRB Boston Generally Followed Their Process for Purchasing MSLP Loan Participations but Can Formally Document Some Key Processes

Full Details: Oversight.gov Report Page

Inspection / Evaluation | 7/17/2023

Small Business Administration OIG

Inspection of Small Business Administration's Initial Disaster Assistance Response to the Coronavirus Pandemic

Full Details: Oversight.gov Report Page

Disaster Recovery Report | 10/28/2020

1 - Open

Review all loans that had a bank account number changed from that shown on the original application to determine if the changes were legitimate or fraudulent. If not legitimate, work to recover the funds, deobligate any undisbursed funds, and refer to the OIG.

10 - Closed

Strengthen controls for verifying an entity’s start date to ensure applicants meet eligibility requirements.

2 - Closed

Establish or strengthen controls to ensure loan deposits are made to legitimate bank accounts for eligible borrowers only.

3 - Closed

Review duplicate loans to IP addresses, email addresses, business addresses, and bank accounts to determine if there are undisbursed funds that should be suspended until the duplicate loans are assessed for eligibility.

4 - Closed

Cancel all ineligible loans that are not disbursed, recover funds from all loans disbursed to ineligible applicants, and flag those loans for the improper payments estimation process.

5 - Closed

Strengthen or establish controls to ensure multiple loans are provided only to eligible applicants and prevent the erroneous duplication of loans.

6 - Open

Strengthen data integrity to make it possible to determine if the inaccurate information allowed loans to be made to ineligible entities and to strengthen SBA’s ability to service loans appropriately.

7 - Closed

Review the applicants with approved loans to determine if there are undisbursed funds remaining that should be suspended until the business start date is verified and the applicant is deemed eligible based on the CARES Act eligibility requirements. If the applicant is deemed ineligible, recover any disbursed funds, deobligate any undisbursed funds, and flag the application as ineligible.

8 - Closed

Review the advance grants to determine if the application was legitimate and the business met CARES Act eligibility requirements. If not, recover the funds and flag the application as ineligible.

9 - Closed

Revise the FY 2021 Improper Payments Act Checklist to include checking EIN dates for COVID-19 EIDLs and advance grants or program the system to flag erroneously approved loans and advance grants as improper payments; the information should be used during the FY 2021 improper payments estimation process.

Date Range

Report Category

Submitting Agency

Fraud Type

Agency Reviewed

Any Recommendations

Any Open Recommendations

Reports

The Board Has Effective Processes to Collect, Aggregate, Validate, and Report CARES Act Lending Program Data

SBA’s Handling of Potentially Fraudulent Paycheck Protection Program Loans

EDA Needs to Improve Oversight of CARES Act Revolving Loan Funds to Ensure Loans Are Made to Eligible Borrowers and Used as Intended

The Board and FRB Boston Generally Followed Their Process for Purchasing MSLP Loan Participations but Can Formally Document Some Key Processes

Inspection of Small Business Administration's Initial Disaster Assistance Response to the Coronavirus Pandemic

Glossary

Glossary name will go here