Remote Hearing on “Rooting Out Fraud in Small Business Relief Programs”
On Thursday, March 25, 2021, at 12:00 p.m. ET, Rep. James E. Clyburn, the Chairman of the Select Subcommittee on the Coronavirus Crisis, will hold a hearing with Small Business Administration (SBA) Inspector General Mike Ware, Pandemic Response Accountability Committee Chair Michael Horowitz, and Government Accountability Office Director of Financial Markets and Community Investments William Shear to examine how the Trump Administration’s mismanagement of small business relief programs led to nearly $84 billion in potentially fraudulent loans.
Last June, the Select Subcommittee sent a letter to the SBA OIG flagging an error at SBA that allowed for duplicate loans. In September, the Select Subcommittee issued a preliminary analysis of Paycheck Protection Program (PPP) data, finding billions of dollars may have been diverted to waste, fraud, and abuse. Last week, responding to requests from the Select Subcommittee, the SBA OIG published a flash report identifying $692 million in duplicate loans.
To detect fraud in small business relief programs, including PPP and the Economic Injury Disaster Loan (EIDL) program, the American Rescue Plan is investing an additional $142 million into oversight of these programs. This hearing will also consider efforts to prevent future fraud and ensure the neediest small businesses receive relief, as intended by Congress.
The Honorable Michael E. Horowitz
Chair, Pandemic Response Accountability Committee, Inspector General, Department of Justice
Dr. William B. Shear
Director, Financial Markets and Community Investment, Government Accountability Office
The Honorable Hannibal "Mike" Ware
Inspector General, Small Business Administration