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.

Small Business Administration OIG

Serious Concerns of Potential Fraud in EIDL Program Pertaining to the Response to COVID-19

Full Details: Oversight.gov Report Page

Department of Transportation OIG

Memorandum to the Secretary: Key Potential Risk Areas for the Department of Transportation in Overseeing CARES Act Requirements

Implementing the Coronavirus Aid, Relief, and Economic Security (CARES) Act is among the Department of Transportation’s (DOT) highest priorities in this time of national emergency. The CARES Act provides DOT with over $36 billion to prevent, prepare for, and respond to COVID-19 across all modes of transportation. To its credit, DOT swiftly distributed these funds and has begun implementing the Act’s requirements to provide much-needed relief to American workers, families, and businesses. As the Department is aware, the volume of CARES Act funds and the speed with which the funds have been...

Full Details: Oversight.gov Report Page

Small Business Administration OIG

Date Range

Report Type

Report Category

Submitting Agency

State/Local Agency

State (State and Local Reports)

Fraud Type

Agency Reviewed

Related Organizations

Management Challenges

Any Recommendations

Any Open Recommendations

Reports

Inspection of SBA's Implementation of the Paycheck Protection Program

Management Alert Paycheck Protection Program Loan Recipients on the Department of Treasury’s Do Not Pay List

Evaluation of the CARES Act Debt Relief to 7(a) Borrowers

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

Serious Concerns of Potential Fraud in EIDL Program Pertaining to the Response to COVID-19

Memorandum to the Secretary: Key Potential Risk Areas for the Department of Transportation in Overseeing CARES Act Requirements

Flash Report Small Business Administration's Implementation of the Paycheck Protection Program Requirements

Third White Paper: Risk Awareness and Lessons Learned from Prior Audits of Entrepreneurial Development Programs

Second White Paper: Risk Awareness and Lessons Learned from Audits and Inspections of Economic Injury Disaster Loans

White Paper: Risk Awareness and Lessons Learned from Prior Audits of Economic Stimulus Loans

Glossary

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