Skip to main content
Report File
Title Full
EDEDA Needs to Improve Oversight of CARES Act Revolving Loan Funds to Ensure Loans Are Made to Eligible Borrowers and Used as Intended
Date Issued
Submitting OIG
Department of Commerce OIG
Agencies Reviewed/Investigated
Department of Commerce
Components
Economic Development Administration
Report Number
OIG-25-019-A
Report Description

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 did not identify this as an area of concern.

Report Type
Audit
Special Projects
Pandemic
Agency Wide
Yes
Number of Recommendations
4
Questioned Costs
$4,020,050
Funds for Better Use
$0
Report updated under NDAA 5274
No

Department of Commerce OIG

United States