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

Federal Reserve Board & CFPB OIG

Results of Analytical Testing of the Board's Publicly Reported Data for the Secondary Market Corporate Credit Facility

Full Details: Oversight.gov Report Page

Date Range

Report Category

Submitting Agency

Agency Reviewed

Any Recommendations

Any Open Recommendations

Reports

FRB Boston Followed Its Processes for Monitoring the Credit Quality of Main Street Lending Program Loans

Results of Analytical Testing of the Board’s Publicly Reported Data for the Main Street Lending Program

Observations on Cybersecurity Risk Management Processes for Vendors Supporting the Main Street Lending Program and the Secondary Market Corporate Credit Facility

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

Following Established Processes Helped FRB New York and the Board Reduce Risks Associated With Lending Facility Contracts

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

Results of Analytical Testing of the Board's Publicly Reported Data for the Secondary Market Corporate Credit Facility

Glossary

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