Risk Advisory – Potential Identity or Other Fraud in SBA Pandemic Relief Programs

The Pandemic Response Accountability Committee (PRAC) is issuing this Risk Advisory to notify Small Business Administration (SBA) management of potential identity or other fraud in its COVID-19 Economic Injury Disaster Loan (EIDL) program, EIDL Advance program, and Paycheck Protection Program. The PRAC identified possible identity or other fraud in one or more of these SBA programs involving 945 minors (under 18 years old) and 231 elderly individuals (80 years and older) who are also listed as household members in the Department of Housing and Urban Development’s Low Rent and/or Housing Choice Voucher program. We urge SBA to further examine the potential identity fraud we have detected using SBA’s own verification methods to determine which instances are fraud and take appropriate action to prevent further harm if it is determined that a minor’s or elderly’s identity was fraudulently used. We are providing management with a separate non-public version of this Risk Advisory to share the details regarding these additional safeguards.