House Committee on Small Business Ranking Member Luetkemeyer sent a letter to SBA Administrator Guzman demanding answers surrounding the increase of rampant fraud within the Economic Injury Disaster Loan (EIDL) program. On August 12, 2021, Administrator Guzman sent a letter to Ranking Member Luetkemeyer reporting that 1,127,327 EIDL applications now have an SBA Agency Hold for identity theft reasons. This is unacceptable as American taxpayer dollars are on the line. The SBA must enact enhanced oversight guardrails immediately.
Excerpts can be found below.
“In a report dated May 6, 2021, the IG found that 846,111 COVID EIDL applications have been flagged for identity theft reasons. Unfortunately, your letter to me dated August 12, 2021 shows that this program continues to be susceptible to nefarious activity by reporting that 1,127,327 applications now have an Agency Hold for identity theft reasons. Simply put, this program is a magnet for fraudulent activity.
“This is unacceptable as American taxpayer dollars are on the line. Enhanced oversight guardrails must be erected, and dollars must be safeguarded.
“With reports from the Government Accountability Office (GAO) and the IG published almost monthly, there is no shortage of recommendations to better protect these programs and the taxpayer dollars that are used to fund them.
“While some have concluded, others are set to expire in the near future.
“…I am requesting that you provide me with a timeline and date of when each GAO and IG recommendation will be thoroughly implemented, officially closed out, and explicitly executed by SBA personnel.”