Davids Calls For More Accountability, Transparency in Small Business Administration Programs After Reports of Fraud in Economic Injury Disaster Loan Program
The Small Business Administration's (SBA) Office of the Inspector General released a report this week saying it received complaints of more than 5,000 instances of potential fraud in the Economic Injury Disaster Loan (EIDL) program, which has helped small businesses stay afloat during disasters and has been expanded during the coronavirus crisis. Representative Sharice Davids, a member of the House Small Business Committee, released the following statement:
“I’m extremely concerned about reports of fraud in the Economic Injury Disaster Loan program. I’ve heard from small businesses around Kansas’ Third District that this program has been an essential lifeline to keep their business open and keep paying their staff, but not every business that needs it has been able to access the program. That makes reports of loans going to ineligible businesses and some getting duplicated all the more alarming and unacceptable. I’ve been pushing for accountability and transparency in EIDL and other SBA programs on the Small Business Committee and I’ll continue to working to get these issues addressed. Our small businesses are counting on it.”
Davids has been a leader on accountability and transparency in SBA COVID relief programs. She has called for transparency on EIDL verification requirements adjustments to expedite loan approvals while also preventing fraud and abuse. And her bill, the PPP Accountability Act, would require transparency for another SBA relief program.