The Small Business Administration's (SBA) Office of Inspector General (OIG) is issuing this management advisory to bring attention to concerns regarding SBA’s decision to end active collections on delinquent COVID-19 Economic Injury Disaster Loans (EIDL) with an outstanding balance of $100,000 or less.First, SBA’s decision to cease collections risks violating the Debt Collection Improvement Act of 1996, which prohibits ending collections on fraudulent, false, or misrepresented claims, because SBA OIG and other oversight agencies are continuing to work on identifying COVID-19 EIDL fraud that may not have been identified by the agency. It is also unclear whether SBA plans to end active collections on loans for borrowers who received multiple COVID-19 EIDLs of $100,000 or less that, when combined, exceed $100,000.Second, SBA based its decision to end active collections on a cost-benefit analysis that used a dissimilar loan program and a private-sector loan servicing model to estimate proceeds from collections and collection costs. The cost-benefit analysis did not include periodic comparisons of costs incurred and amounts collected as federal regulations require.Finally, SBA does not appear to have fully evaluated its consultant’s recommendation to sell a portion of the COVID-19 EIDL portfolio to maximize the return to taxpayers.SBA management agreed with recommendations 3, contingently agreed to recommendation 2 based on the outcome of recommendation 1, partially agreed with recommendations 1 and 4, and disagreed with recommendation 5.
| Report Date | Agency Reviewed / Investigated | Report Title | Type | Location | |
|---|---|---|---|---|---|
| Small Business Administration | Ending Active Collections on Delinquent COVID-19 Economic Injury Disaster Loans | Audit | Agency-Wide | View Report | |
| Department of State | Audit of Physical Security Standards for Department of State Temporary Structures | Audit | Agency-Wide | View Report | |
| U.S. Postal Service | Corporate Information Security Office Workforce | Audit | Agency-Wide | View Report | |
| Export-Import Bank | Fiscal Year 2023 Major Management Challenges | Top Management Challenges | Agency-Wide | View Report | |
| Export-Import Bank | Comparative Analysis of U.S. and OECD Arrangement Export Credit Agencies | Inspection / Evaluation | Agency-Wide | View Report | |
| Export-Import Bank | Fiscal Year FY 2024 Work Plan | Other | Agency-Wide | View Report | |
| Export-Import Bank | Management Alert: EXIM Has Not Fully Complied with Antideficiency Act Reporting Requirements | Other | Agency-Wide | View Report | |
| Export-Import Bank | Evaluation of the Relationship between Export-Import Bank of the United States and Private Export Funding Corporation | Inspection / Evaluation | Agency-Wide | View Report | |
| Appalachian Regional Commission | Management and Performance Challenges Report | Top Management Challenges |
|
View Report | |
| Environmental Protection Agency | Audit of the EPA’s Fiscal Years 2022 and 2021 (Restated) Hazardous Waste Electronic Manifest System Fund Financial Statements | Audit | Agency-Wide | View Report | |
