Small Business Administrators Distribute Over $ 3.6 Billion To Those Who Can’t Pay


Author Adam Andrzejewski of RealClearPolicy

According to a reports from the Inspector General of Small Business Administration to SBA Administrator Isabella Guzman, $ 3.6 billion in Economic Injury Disaster Loans (EIDL) was disbursed to those who may not be eligible to receive it.

The report found that the total $ 3.1 billion was in conjunction with COVID-19 EIDL loans, while another $ 550 million was in emergency EIDL support.

The SBA provides a number of small business support programs, including the EIDL, which is used to provide small businesses that face the challenges of low-cost debt from the government. However, careless oversight has led to increasing fraud on a number of programs, and New York Times report that up to 15% of its Paycheck Protection Program loans were fraudulent.

Related: Dems Threaten To Chase Filibuster, But Moderates Hold The Line

Why did the SBA give so many loans to those who did not qualify? In particular, it has not been difficult to use the US Treasury’s Do Not Pay Working System (US) Do Not Pay Working System, a database that helps government agencies prove their worth and detect and prevent fraud, vandalism, and abuse.

The Inspector General used the system to monitor 75,180 loans issued to non-recipients, and found that 26,736 loans, or 35%, were already identified as fraudulent threats in previous IG reports. In other words, the SBA continues to ignore what has already been identified as fraudulent.

This leaves taxpayers and the bill.

Integrated with permission from RealClearWire.

The #WasteOfTheDay is provided by legal researchers at OpenTheBooks.com.

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