“Many of the top management challenges are longstanding, inherently difficult, and may likely continue to be challenges in the coming years. Addressing the challenges will require consistent, focused attention from agency management and ongoing engagement with Congress, the public, and other stakeholders,” reads the OIG’s Top Management and Performance Challenges Facing the Small Business Administration in Fiscal Year 2023 report. “Overall, the agency has made progress addressing this year’s list of management challenges.”
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The average rating for Challenge 1 issues Challenge 1: The Economic Relief Programs are Susceptible to Significant Fraud Risks and Vulnerabilities The Office of Inspector General’s PPP/EIDL investigative work led to 449 indictments, 354 arrests, and 303 convictions as of July 31, 2022. In collaboration with other government agencies, they have seized over $1 billion in stolen EIDL funds. While the SBA has made significant progress in addressing the 20 OIG reports relating to the PPP and EIDL programs, this will remain a challenge throughout fiscal year 2023. |
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The average rating for Challenge 3 issues Challenge 3: There are Challenges in IT Investment, System Development, and Security Controls The report claims that the SBA’s IT investment and security controls need further improvement. The third challenge says that the SBA needs to make progress on five specific control areas relating to existing system development and monitoring controls to reflect changing IT design risks. |
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The average rating for the Challenge 4 issues Challenge 4: Risk Management and Oversight Practices Need Improvement to Ensure the Integrity of Loan Programs The OIG recommends that the SBA continue to work on its oversight and management of high-risk lending participants, loan agents, and lender service providers. The agency has made substantial progress addressing these three topics, but the OIG will continue monitoring the SBA’s oversight and actions to address the mentioned issues. |
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Challenge 6: Identification of Improper Payments in SBA’s 7(a) Loan Program Continues to be a Challenge The OIG states that this continues to be a challenge because the SBA did not adequately review 7(a) loans that resulted in improper payments. In response, the SBA improved its loan reviews and loan specialist training and updated the loan review checklist. They also allowed loan specialists more time when reviewing complex early defaulted loans. The OIG will continue monitoring this area’s risks throughout fiscal year 2023. Source: |
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the Federal Government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
